12th Jul 2016 06:57
LONDON (Alliance News) - Real estate investor Redefine International PLC said Tuesday it had made good progress on asset management initiatives on its Aegon UK portfolio, and said the diversified nature of its portfolio will prove defensive following the UK's vote to exit from the European Union.
In September, FTSE 250-listed Redefine acquired the Aegon UK portfolio, comprising 19 properties in the UK, mostly in London and the South East, for GBP437.2 million from Aegon UK Property Fund, and since said it had been implementing a number of asset management initiatives on the portfolio.
On Tuesday, Redefine said that, since September 2015 when it bought the AUK portfolio, it has increased the portfolio's weighted average unexpired lease term to 8.0 years from 7.5 years, saved GBP300,000 in vacancy costs and achieved an additional uplift of GBP600,000 to annualised rental income, representing a 5.0% increase on estimated rental value.
Following the result of the UK referendum on EU membership, Redefine said it has completed two leases totalling GBP600,000, which represents a 10% increase on estimated rental value.
"We firmly believe the diversified nature of the Redefine's portfolio, with 21% of market values located in Germany, together with our income focus and long average lease length will prove to be defensive in light of the uncertainty following the UK's vote to exit from the EU. We remain comfortable with our debt profile with an average debt maturity of 7.4 years and no significant debt maturing until 2020. Completed refinancing activities post our half year results have reduced the cost of debt to 3.4% from 3.6%," said Chief Executive Mike Watters.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
RDI.L