The UK arm of Japanese real estate firm Nomura Real Estate has bought a £59.3m (€67.2m) London office asset from RDI REIT.
RDI said it has completed the disposal of 127 Charing Cross Road to Nomura Real Estate UK.
RDI acquired the asset as part of the AUK portfolio acquisition in March 2016 for £42.6m.
The income-focused UK real estate investment trust said the growth in the asset’s value has been due to an asset management strategy including securing full planning permission, which provides an opportunity to increase the overall area of the property by 41.1% through the development of three additional floors.
Stephen Oakenfull, CEO of RDI, said: “This disposal marks the conclusion of a well-executed and successful asset management plan designed to enhance the value of an income-generating asset.
“We believe that the sale captures a significant proportion of the asset’s potential value and provides us with the ability to recycle capital into opportunities with stronger risk-adjusted returns.
“In the meantime, the proceeds of this transaction further strengthen the balance sheet where we now have cash and available facilities totalling approximately £275m to execute on our strategy.”
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