Redefine International has completed on the acquisition of the second tranche of the Aegon UK portfolio for a purchase price of £204.7m (€262.9m).
The total purchase price of the acquisition of the combined AUK portfolio, including Banbury Cross Retail Park and after adjusting for the disposal of 16 Grosvenor Street, London, was £460.7m (£591.7m). The asset at 16 Grosvenor Street was sold in December 2015 for £35.6m (€48.8m) to a private investor.
To support the funding of the transaction, Redefine International utilised £252m (€323.6m) of bank debt, with the balance funded from existing cash resources and the proceeds from the recent £115m (€147.7m) equity placement successfully concluded on 23 February 2016. The AUK portfolio significantly increases the company’s existing portfolio, adding largely institutional quality properties across which asset management progress has exceeded initial expectations.
Mike Watters, CEO of Redefine International commented: "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. Redefine International’s portfolio has now increased by approximately 50% to £1.5bn, whilst a significant, resilient and long term rental stream has been added, supplementing our existing income. The portfolio also presents a range of future opportunities for enhancing rental income and value through active asset management.
“We are confident that this acquisition puts Redefine International in a strong position at this point in the property cycle and we are looking forward to updating the market on the early progress made on the asset management plan as we work to integrate the AUK assets into our existing portfolio."
