2nd Feb 2021 08:22
(Alliance News) - RDI REIT PLC on Tuesday announced the sale of office building 127 Charing Cross Road in London to Japanese real estate firm Nomura Real Estate UK Ltd for GBP59.3 million, making for a net initial yield of 3.1%.
The London and Johannesburg-listed real estate investment trust was acquired as part of the Aegon UK portfolio acquisition for GBP42.6 million. The sale price as a result reflects a 39% rise in value since it was bought.
"We believe that the sale captures a significant proportion of the asset's potential value and provides us with the ability to recycle capital into opportunities with stronger risk-adjusted returns," said Chief Executive Officer Stephen Oakenfull.
"In the meantime, the proceeds of this transaction further strengthen the balance sheet where we now have cash and available facilities totalling approximately GBP275 million to execute on our strategy," Oakenfull added.
Shares in RDI REIT were up 1.0% at 88.50 pence on Tuesday in London, while its Johannesburg shares were 0.5% higher at ZAR18.00.
By Dayo Laniyan; [email protected]
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