Redefine International has announced it has agreed to sell the St Anne’s House office building in Croydon, England for £8.4 million, £3.4 million above the property’s 31 August 2013 book value.
Mike Watters, Chief Executive of Redefine International, notes the large premium to book value of 68% achieved on this sale bodes well for valuation increases across its portfolio going forward.
Redefine International is a UK-REIT with a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.
Redefine International’s geographically diverse investment portfolio is independently valued over £1 billion and comprises real estate assets in the retail, office, industrial and hotel sectors across the UK, Europe – specifically Switzerland, Germany, the Netherlands and the Channel Islands – and Australia. For South African investors it represents a Rand hedge in a stable, sustainable income fund with exposure to real estate in first world markets.
St Anne’s House is a vacant 75,000 sq ft 1960’s office building previously occupied by the UK Home Office. It formed part of the legacy Government Portfolio acquired by Redefine International through its merger with Wichford in 2011.
Redefine International received planning permission for its redevelopment into a 144 bed hotel with 46 residential units on the building’ supper floors, in September 2013. St Anne’s House is opposite the much-anticipated redevelopment of the Whitgift shopping centre in Croydon Town Centre and will form part of the regeneration of this area.
Watters says: “We’re pleased with the result of our business plan for this property and to have made this disposal, which will enable us to recycle the proceeds into other areas of our portfolio. As the investment and development market improves, we are assessing several other assets across the portfolio which offer the potential to benefit from initiatives such as securing change of use, enabling us to realise additional value for shareholders.”