Redefine makes good progress on Aegon UK portfolio
Redefine International, the self-described “opportunistic income focused” real estate investment trust, said it had made good progress ahead of initial expectations on asset management initiatives on its recently acquired Aegon UK portfolio (AUK).
Following the UK's decision to leave the European Union in June, the company said it had completed two encouraging leases totalling £0.6m which represented a 10% increase on estimated rental value (ERV).
“Since exchanging contracts on the AUK portfolio in September 2015, the company has increased the AUK portfolio's weighted average unexpired lease term from 7.5 years to 8.0 years, saved £0.3m in vacancy costs and achieved an additional uplift of £0.6m to annualised rental income, representing a 5% increase on ERV,” Redefine said.
Chief executive Mike Watters said the diversified nature of the Redefine International portfolio, with 21% of market values located in Germany, together with its income focus and long average lease length would prove to be “defensive in light of the uncertainty following the UK's vote to exit from the EU”.
“We remain comfortable with our debt profile with an average debt maturity of 7.4 years and no significant debt maturing until 2020. Completed refinancing activities post our half year results have reduced the cost of debt to 3.4% from 3.6%,” he said.
"We are pleased with the level of income enhancing activity achieved on the AUK portfolio to date with this early success improving the quality of our portfolio and our ability to deliver our income focused total return strategy going forward."