17th Jan 2014 09:24
LONDON (Alliance News) - The UK's newest real estate investment trust (REIT), Redefine International PLC, Friday said it is reaping the rewards of improved occupier demand, in both the retail and commercial sectors, as its occupancy levels across its portfolio has increased since August.
The firm, which changed its legal status to a REIT in December, said occupancy across its portfolio now stands at 97.6% compared with 97.3% in August.
Redefine said it has been busy in the last few months with one acquisition and a disposal.
In December, the firm completed the acquisition of the Weston Favell Shopping Centre in Northampton for GBP84 million, reflecting a net initial yield of 7.5%.
The firm also sold a residential site in Harrow to Redrow Homes Limited for GBP13.8 million, reflecting a 12.4% premium to the August 31, 2013 book value.
Overall, the firm said its existing businesses have performed well, with ten new leases exchanged during the period for its UK retail arm, equating to a total gross rent of GBP545,250 a year.
Following the acquisition of Redefine International Fund Management, the hotel portfolio now consists of six hotel properties located in Greater London and one hotel in Reading, together with a 33% shareholding in Redefine BDL Hotel Group Ltd, which manages the company's hotel portfolio.
In Europe, a number of new leases were signed including a new five-year lease with Vitalia health and food products in Berlin at an annual rent of EUR46,980 - the space had previously been vacant.
Redefine also completed a significant restructuring of the Aviva debt secured against Grand Arcade Shopping Centre in Wigan and West Orchards Shopping Centre in Coventry
The debt against the West Orchards property was repaid in cash at the market value of the property at GBP37 million.
The property was subsequently refinanced through a new GBP18.3 million Santander bank facility at an all-in rate of 4.8%.
The debt against the Grand Arcade property was reduced by approximately 50% to GBP73 million in consideration for a cash payment of GBP7 million.
Redefine has assumed 100% ownership. However, insurer Aviva PLC will retain the right to participate in 50% of the income and capital growth generated by Grand Arcade, after all costs, expenses and interest, going forward.
Redefine shares were untraded at 6.30 pence Friday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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