Redefine International has become the UK’s newest REIT.
Based on the company’s closing share price on 3 December and including 98m new shares to be issued on 6 December, Redefine’s expected market capitalisation is circa £580m.
This will make it the UK’s 13th-largest REIT by size.
As at 31 August 2013, its assets were worth £1.06bn in total, spread across five key sectors:
• stable income – predominantly offices, many of which are let to UK government tenants;
• UK retail – regionally dominant shopping centres and convenience retail parks;
• hotels – branded limited service hotels in London;
• Europe – office and retail assets, predominantly in Germany; and
• a 13.7% shareholding in Cromwell, one of Australia’s leading REITs.
The company also looks at selective redevelopment and active asset management initiatives where there are opportunities to support income and capital growth.
Redefine said that as a newly established UK REIT, it would bring its highly income-focused opportunity to the international investment community, which is seeking yield in this low-growth, low-inflation environment.
It added that, with a dual listing on the Johannesburg Stock Exchange, the company would provide South African investors with access to the solid and economically secure first world property markets of the UK, northern and western Europe, including Germany and Switzerland, as well as Australia.
Chairman Greg Clarke said: “This is an exciting time for Redefine International. Becoming the UK’s newest REIT, with a simplified structure, should enhance both the liquidity of our shares and the company’s ability to distribute optimal returns for shareholders.
“Against an improving outlook for real estate across our key markets and with a solid and diversified portfolio that already offers considerable opportunity to add value, we look to the future with confidence and enthusiasm.”
Chief executive Mike Watters said: “We are very pleased to have concluded the structural elements of becoming a REIT and look forward with enthusiasm to using our property skills and insight to deliver superior income returns for our shareholders.”
bridget.oconnell@estatesgazette.com
