Redefine International has announced that it has sold an office block at 201 Deansgate, in Manchester, for £29.15 million. The building was originally acquired as part of the AUK Portfolio in March 2016 and Redefine International says that the sale price represents a net initial yield of 3.6% and a 14.3% premium to the last reported book value. The geared IRR over the investment period was reportedly 22%. The property, which has been acquired by Aviva Investors, acting on behalf of Essex County Council, provides 7,776 square metres (or 83,688 square feet) of office space and delivers annual net rental income of £1.1m with a WAULT of 4.1 years.
Redefine International says that the proceeds from the sale will be used to fund the refinancing and extension of certain of its debt facilities. Terms have been agreed to extend the term of certain debt facilities with the Company contributing approximately £25.0m of equity to reduce the loans. Redefine International says that the improvement to the terms of the debt facilities will deliver an attractive return on the equity contribution of approximately 10% per annum. Further details on the Company’s plans for the evolution of its capital structure will be provided at its Capital Markets Day on Monday 6 February 2017.
Redefine International sells 201 Deansgate, Manchester, for £29.15 million : RDI