7th Oct 2014 06:36
LONDON (Alliance News) - Redefine International PLC, the income-focused UK real estate investment trust (REIT), Tuesday said it has disposed of 10 regional office assets for GBP35.1 million, meaning its non-core portfolio has been reduced to about GBP30.0 million or 3.0% of the group's direct property portfolio.
According to the REIT, the sale price represents a 12.4% premium to book value.
Redefine said the proceeds of the disposal will be used to repay debt associated with the Delta facility, which was restructured in October 2012.
The company said it still has a 65% share of net income from the remaining Delta portfolio. The Delta facility remains non-recourse to the group, and the disposal has no impact on the company's adjusted net asset value, the REIT added.
"We are pleased with the successful outcome of this disposal. Investor appetite for regional offices is growing and we are therefore confident of our plans for completing the remaining disposals of our non-core assets and we will provide a further update in due course," Chief Executive Mike Watters said in a statement.
Redefine International shares Monday closed at 51.10 pence.
By Samuel Agini; [email protected]; @samuelagini
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