Real estate investment trust RDI has acquired an 80% stake in a portfolio of four offices in Central London for £161.7m (€181.1m).
The FTSE 250 listed group, formely known as Redefine, said it bought the assets from Forum Partners, Kailong Group and Office Space in Town (OSIT).
OSIT, the company’s new strategic partner, will continue as the operator and retain a 20% interest in the portfolio.
The portfolio value reflects an anticipated net initial yield of over 6.0%, it said.
RDI said the acquisition includes existing debt facilities of £73.5m reflecting a loan to value of 45%, in line with the strategic priority of reducing group leverage.
The equity consideration for RDI’s 80% interest in the portfolio of £72.5m, including transaction costs of less than 1.0%, is a timely and efficient reinvestment of the majority of the proceeds from the recent disposal of the German supermarket portfolio, it said.
RDI said all four properties have been extensively refurbished and redeveloped by OSIT in the last four years.
RDI said St Dunstan’s, EC3R was acquired for £63.7m, Boundary Row at SE1 was acquired for £36.3m. Little Britain at EC1A was bought for 32.3m and New Broad Street, EC2M was acquired for £29.4m.
Mike Watters, the CEO of RDI said: “We are very pleased to have secured this opportunity to efficiently recycle the majority of the proceeds from the recent disposal of German retail assets into four high quality flexible London offices whilst maintaining our high-quality income profile.
This earnings accretive acquisition enhances the company’s exposure to areas of long-term economic growth and supports its strategic priority of buying and owning assets with strong property fundamentals in order to continue delivering superior, sustainable and growing income returns, Watters said.
Last month, Redefine International changed its name and rebranded to RDI REIT, short for Real Estate Diversified Income REIT.
The company said the new brand is synonymous with its plan to become a UK income focused real estate invetment trust.