RDI disposes of Leeds office for €29.9m (GB)

RDI disposes of Leeds office for €29.9m (GB)

RDI has exchanged contracts for the disposal of City Point in Leeds for €29.9m (£26.05m).


The 5,699 m² (61,379 ft²) office was originally purchased as part of the Company’s AUK Portfolio in March 2016 for €24.8m (£21.6m). In January 2017, RDI let 1,022m² (11,000ft²) to Blacks Solicitors LLP, bringing the asset to full occupancy. The sale price represents a net initial yield of 5.8% and a 15.3% premium to the last reported market value. The geared internal rate of return (‘IRR’) over the investment period was over 20%.


The property, which has been acquired by West Midlands Pension Fund, delivers total gross annualised rental income of €1.84m (£1.6m) with a WAULT of 3.7 years.


Mike Watters, Chief Executive, commented: “The disposal of City Point, Leeds represents yet another example of delivering value from the AUK acquisition. After two years of owning this asset, we have delivered an excellent 20.6% premium to the acquisition price, whilst also de-risking the portfolio by reducing our exposure to a maturing regional office investment market and an asset with a number of upcoming lease breaks and expires. We are confident that the progress on our active recycling will support our relentless focus to deliver superior, sustainable and growing distributions.“

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