Breaking: Investor acquires £161m London office portfolio
A UK real estate investment trust has snapped up a majority interest in a £161.7m group of flexible London offices.
RDI acquired the properties from Forum Partners, Kailong Group and Office Space in Town (OSIT), with the latter retaining a 20% stake in the portfolio.
OSIT will also continue as the offices’ operator.
The four properties included within the deal are: St Dunstan’s EC3R, with a value of £63.7m; Boundary Row SE1, which is worth £36.3m; Little Britain EC1A, valued at £32.3m; and New Broad Street EC2M, worth £29.4m.
RDI chief exec Mike Watters said: “This earnings accretive acquisition enhances our exposure to areas of long-term economic growth and supports our strategic priority of buying and owning assets with strong property fundamentals in order to continue delivering superior, sustainable and growing income returns.
“Furthermore, and in line with our strategy to reduce leverage, this portfolio is currently financed at 45% LTV, which is at the lower end of our medium-term target of between 45.0% and 50.0%.”
He added: “Our medium-term target of delivering between 3.0% and 5.0% growth in underlying earnings per share remains unchanged.”