7th Jul 2020 08:14
(Alliance News) - Redefine Properties Ltd on Tuesday said its offer for an up to 111.9 million shares sale in RDI REIT PLC was fully accepted.
The real estate investment trust announced a tender offer at the end of June made to the holders of its outstanding EUR150.0 million 1.50% secured exchangeable bonds due September 2021 exchangeable into the shares of RDI pursuant to which bondholders could elect to tender to have all or any of their bonds redeemed by Redefine.
As a result of this tender offer, Redefine agreed to dispose of up to 111.9 million shares in RDI, being its entire shareholding, representing 29%.
Redefine confirmed on Tuesday that it received irrevocable tender offers for 100% of the outstanding bonds. Redefine further confirmed that the sale - worth GBP106.3 million - will be implemented on Friday.
Redefine shares closed 0.3% lower on Monday in Johannesburg at ZAR3.68 each, while RDI shares closed up 3.9% at ZAR18.28 each. In London, RDI shares ended the day 0.8% lower at 79.90p each.
In a separate statement Tuesday, RDI said, across its portfolio, 70% of gross rents or income due and demanded was collected for either the June quarter or the month of June where rents are billed monthly. This compares to 54% for the March quarter.
Portfolio occupancy at the end of May, excluding RBH managed hotels and London Serviced Offices, remains broadly unchanged at 96%, RDI said.
"Our focus since the start of the Covid-19 crisis has been on the welfare, safety and security of our stakeholders, and on ensuring that asset values are protected, revenues are carefully managed and costs are minimised," said Chief Executive Mike Watters.
"Whilst near-term visibility remains low, recent trading following an easing of government restrictions has been encouraging and portfolio occupancy remains high," added Watters.
Looking forward, RDI said negotiations with occupiers and clients are ongoing and the company expects that the current collection rates will improve.
RDI's current cash balance is GBP80.0 million, it said. The company's capital commitments for the next 12 months remain limited at less than GBP2.0 million.
By Evelina Grecenko; [email protected]
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