18th Jul 2014 08:05
LONDON (Alliance News) - Redefine International PLC Friday said it has added to its portfolio since March 1, as it continues to see recovery in the real estate markets in which its operates.
In an interim management statement for the period March 1 to date, the company said it made a number of acquisitions during the period including Enfield Travelodge for GBP10.5 million. The 39,000 square foot hotel was constructed in 2012 and is let to Travelodge for 33 years.
The property includes a separate retail unit at ground floor level, which is currently vacant. Significant progress has already been made on letting the vacant space which is expected to increase the net initial yield to approximately 6.4%, Redefine said.
In addition, the company completed an asset swap within its Malthurst portfolio, whereby eight assets were sold and three were acquired.
The portfolio consists of 14 petrol filling station properties spread throughout England and are principally located in prominent areas beside busy arterial roads. Of the sites, 11 are let to UK petrol filling station operator, Malthurst Ltd, on 20 year leases.
FTSE 250-listed Redefine said rising confidence in the UK economy is supported by a revival in major office markets outside of London.
"Occupier take-up is recovering to pre-recession levels in the UK's key office markets and the lack of speculative development since 2009 is expected to produce upward pressure on prime rents beyond the levels recorded in the previous property cycle," Redefine said.
Redefine said two new commercial leases totalling over 78,000 square feet were signed during the period. The new leases will produce a total gross rent of GBP632,949 a year compared with an estimated rental value of GBP628,309 a year.
The company also said the UK retail market is showing signs of stabilisation with a decrease in tenant failures and available space.
"Dominant retail centres are attracting occupiers and, while material rental growth is not yet evident apart from in the best locations, there are grounds for cautious optimism," it said.
A total of 11 new retail leases over 11,618 square feet were signed during the period. The new leases will produce total gross rent of GBP294,190 a year compared with an estimated rental value of GBP271,990 a year.
Looking ahead the company said it will remain focused on improving the quality of its portfolio to underpin long-term income returns and extending its debt facilities to provide certainty around future interest costs.
Redefine International shares were up 0.1% at 52.00 pence Friday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
RDI.L