Redefine International makes further £26m sale with BMW showroom

Redefine International, the FTSE 250 UK REIT, has announced its completion on the sale of the Sytner BMW showroom in High Wycombe for £26.1m.

The sale price reflects a net initial yield of five per cent and a premium of 5.8 per cent to the value from February 28, 2017.

The property was acquired in March 2016, and the disposal provides an opportunity to recycle capital out of an asset with limited near-term rental growth prospects.

Mike Watters, CEO of Redefine International, commented: “This disposal is a further example of the quality of the assets in the AUK transaction, which has provided a number of opportunities to extract value over the last 18 months.

“Together with the other recent sales, the transaction provides the opportunity to recycle capital into new investments, where we can use our asset management skills to deliver stronger income returns over the long term.”

In the first half of the year financial year, the business disposed £95m of assets at an average premium of 12.4 per cent. Since then, it has exchanged or completed a further £46.6m of assets which includes the sale of High Wycombe.

The other disposals include two secondary office assets in Bedford and Chatham, as well as a standalone Carphone Warehouse at Merton Priory Retail Park.