Redefine International closes €600m Aegon UK portfolio deal

UK REIT Redefine International has completed the acquisition of the second tranche of the Aegon UK (AUK) portfolio for £205 mln (€264 mln).

Redefine International first announced in September last year that it had reached a conditional agreement with Dutch insurer Aegon's UK Property Fund to acquire the vehicle's entire portfolio for £437 mln (€600 mln) excluding costs.

The portfolio comprises 19 single and multi-let properties with an occupancy rate of 97% and a value of £439.9 mln. A majority of the assets (45.2%) is for retail use, while offices represent 26.7% of the total and industrial the remaining 28.1%.

To support the funding of the transaction the company utilised £252 mln of bank debt, with the balance funded from existing cash resources and the proceeds from a recent £115 mln equity placement.

'The conclusion of this transformational off-market portfolio acquisition is a considerable achievement, particularly in a market which is highly competitive for such institutional quality assets,' said Mike Watters, CEO of Redefine International.

Redefine International’s portfolio has now increased by 50% to £1.5 bn.