21st Dec 2015 09:41
LONDON (Alliance News) - Redefine International, a FTSE 250 UK real estate investment trust, on Monday said it has, together with the Aegon UK Property Fund, exchanged contracts to sell 16 Grosvenor Street in Mayfair, London for GBP35.6 million with a private investor.
The private investor was not named.
The property is a 15,709 square foot prime office building and is currently vacant. It is one of 19 assets included in the GBP490.0 million Aegon UK portfolio acquisition from the Aegon UK Property Fund, as reported on September 7.
The company said 16 Grosvenor Street is included in the second tranche of that deal with Aegon, at an apportioned purchase price of GBP29.0 million. The second tranche of the deal, comprising 10 properties, is expected to complete around March 1, 2016.
The exit price realises an immediate GBP3.0 million profit for Redefine, after adjusting for the 50% profit share which was agreed with the Aegon UK Property Fund in the event of a sale ahead of the transaction's completion.
"While this is a prime asset, it is also low-yielding and, as such, sits outside the immediate, income-focused strategy for Redefine International," Chief Executive Mike Watters said.
"The disposal of 16 Grosvenor Street represents just one of a number of significant value enhancing opportunities that the Aegon UK Portfolio potentially holds for the company, and progress to date on the delivery of asset management initiatives has exceeded our initial expectations," Watters added.
Shares in Redefine were up 1.7% at 51.50 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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