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RDI takes 80% stake in London office portfolio
RDI, the FTSE 250 income focused real estate trust said it had taken an 80% interest in a portfolio of four offices in central London from Forum Partners, Kailong Group and Office Space in Town (OSIT) for £72.5m.
The portfolio value of £161.7m reflects an anticipated net initial yield of more than 6%, RDI said in a statement.
The deal includes existing debt facilities of £73.5m reflecting a loan to value (LTV) of 45%, in line with RDI's priority of reducing group leverage.
RDI said the deal was paid for by reinvesting most of the proceeds from the recent disposal of its German supermarket portfolio.
"The net cash yield on equity is anticipated to be in excess of 9%. The acquisition supports the company's strategy of recycling capital into assets and locations benefiting from sustainable long-term growth opportunities, structural change in occupational demand and strategic infrastructure investment," RDI said.
OS will continue as operator and retain a 20% interest in the portfolio, RDI added.