Income-focused UK REIT, RDI has confirmed the completion of the disposal of its UK retail parks portfolio of six assets.
The headline price of £156.9 million reflects a 3.0 per cent discount to the last reported 20th February 2020 values and a topped-up net initial yield of 7.5 per cent. This transaction marks a significant milestone of the ongoing repositioning of the company’s portfolio and it reflects a pro-forma reduction in the group’s overall retail exposure to 11.8 per cent (29th February 2020: 28.4 per cent).
As previously announced, the proceeds from the transaction will be used to pay down approximately £100 million of the AUK revolving credit facility with the remainder held in cash within the group to enhance cash and facility headroom.
With a diversified portfolio invested principally in the UK, RDI’s investment approach is driven by an in depth understanding of occupational demand including the impact of technology, transport, and infrastructure development. Its portfolio has been repositioned in recent years to increase its weighting to London and the South East and to provide greater exposure to its leading hotel and serviced office operating platforms.
RDI will announce its Full Year Results on Thursday, the 5th of November 2020.