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RDI secures significant leasing transactions across 400,000 sqft including new leases, lease renewals and regears
RDI REIT P.L.C.
("RDI" or the "Company")
(Incorporated in the Isle of Man)
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00BH3JLY32
LEI: 2138006NHZUMMRYQ1745
RDI SECURES SIGNIFICANT LEASING TRANSACTIONS ACROSS 400,000 SQFT INCLUDING NEW LEASES, LEASE RENEWALS
AND REGEARS
RDI, the income focused UK-REIT, is pleased to announce a number of successful new leasing transactions
and lease extensions on £3.65m of annualised rental income, reflecting the Company's continued strong
operational and asset management performance. This reflects an increase in rental income of £0.43m and
includes the letting of 13,000 sqft of previously vacant space. Portfolio occupancy, on a like-for-like basis,
remains high at 98.0% (28 February 2019: 97.5%).
Canbury Business Park, Kingston
At Canbury Business Park, the existing lease with Sitel over the 37,457 sqft office component, which was
due to expire in September 2019, has been surrendered in return for a new five-year lease over 24,000 sqft.
The new rent of £672,000 p.a. equates to £28.00 psf. The remaining space has been let to Interval
International on a 10-year term with a five-year break at £29.50 psf. The business park which comprises 13
small business and light industrial units together with office space, was acquired in December 2017 at a net
initial yield of 5.8%. Since then the office space has been refurbished at a total cost of £1.5 million
(including tenants' incentives), delivering a marginal yield on total cost of c.6.0%.
The site, which is within a short walking distance of the Kingston upon Thames mainline railway station,
provides a number of longer-term residential-led development opportunities. These latest leasing
transactions provide secure income for a five-year period while re-development opportunities are reviewed.
Farnborough, Southwood Business Park
Two previously vacant units have been let at between £13.50 psf and £14.00 psf delivering an annualised
rent of £175,295. The industrial estate was acquired in September 2019 at a net initial yield of 6.2%
including a vacancy of 8.1% and an average passing rent of £12.90 psf. The net initial yield will increase to
7.1% following the new lettings, with the asset now fully occupied. In addition, a number of regears and rent
reviews on the park have been completed, delivering a rental uplift of £300,000, an 18% increase since
acquisition.
Waterside, Leeds
A new 10-year lease has completed with the existing sole tenant; the Secretary of State for Housing,
Communities and Local Government. The rent remains unchanged at £398,650 p.a. (£11.00 psf) with the
equivalent of 26 months' rent free agreed in the form of a stepped rent profile.
Express Park Distribution Centre, Bridgwater
The lease on Unit 3B has been extended by 16 years from May 2020 to May 2036 with a tenant's break
option in May 2030. The rent remains unchanged at £535,000 p.a. (£5.25 psf) with a rent-free period of
13 months.
Break options on Unit 5 in May 2021 and May 2031 have been removed providing a lease until May 2036
and a term certain of over 16 years, in return for a 13 month rent free period.
Following these lease extensions, the overall WAULT for Express Park has increased from 3.2 years to
9.6 years on £3 million of rental income.
Adrian Horsburgh, Property Director at RDI, commented:
"These recent lettings provide a snapshot of the successes we are achieving across the different sectors in
which we operate, demonstrating our commitment to continuously improve the rental tone and increase our
WAULT. Furthermore, occupancy across the portfolio remains high at 98.0%, up from 97.5% in February,
supporting our strategic priority of income generation."
For further information:
RDI REIT P.L.C.
Mike Watters, Stephen Oakenfull Tel: +44 (0) 20 7811 0100
FTI Consulting
UK Public Relations Adviser
Dido Laurimore, Claire Turvey, Ellie Sweeney Tel: +44 (0) 20 3727 1000
Instinctif Partners
SA Public Relations Adviser
Frederic Cornet Tel: +27 (0) 11 447 3030
JSE Sponsor
Java Capital Tel: + 27 (0) 11 722 3050
29 July 2019
Note to editors:
About RDI
RDI is an income focused UK-REIT with a diversified portfolio invested principally in the UK. The
investment approach is driven by an in depth understanding of occupational demand including the impact of
technology, transport and infrastructure investment. The portfolio has been repositioned in recent years to
increase its weighting to London and the South East and to provide greater exposure to our leading hotel and
serviced office operating platforms.
RDI is committed to delivering attractive income led total returns across the real estate cycle. The current
strategic objectives of a lower leverage capital structure and more focused allocation of capital are targeted
at delivering an industry leading and sustainable income return.
RDI is a UK Real Estate Investment Trust (UK-REIT) and holds a primary listing on the London Stock
Exchange and a secondary listing on the JSE. The Company is included within the EPRA, GPR, JSE All
Property and JSE Tradeable Property indices.
For more information on RDI, please refer to the Company's website www.rdireit.com
Date: 29/07/2019 08:00:00
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