LONDON—Redefine International PLC said Monday it had agreed to a pair of acquisition deals with the Aegon UK Property Fund worth a total of approximately £490 million, or US$749 million. In the larger of the two deals, the FTSE 250 UK-REIT will acquire the 19-property AUK Portfolio through its wholly-owned subsidiary, Redefine AUK, for an aggregate consideration of £437.2 million. Separately, Redefine has exchanged contracts with Aegon to acquire Banbury Cross Retail Park, a retail warehouse park, for £52.5 million.
"This is a transformational deal for Redefine International, which rapidly improves the quality and scale of our overall portfolio, supporting our growth plans and strategy to generate consistent and growing income returns,” says CEO Mike Watters. “The portfolio, which includes two prime central London offices valued at £76 million, provides a number of attractive short- and longer-term opportunities where we can enhance and capture value by applying disciplined asset management initiatives.” He adds that the AUK Portfolio's geographic and sector spread “will provide yet further income diversification.”
In connection with the transaction, Redefine has secured a debt facility of £303 million, or approximately US$463 million, provides the UK-REIT with "additional flexibility as part of its future funding strategy,” Waters says. “This transaction puts the business in a strong and exciting position from which we can continue to drive shareholder value.” The debt facility is being provided by a syndicate that includes HSBC Bank, Barclays Bank, Abbey National Treasury Services and the Royal Bank of Scotland.
With a mix of retail, office and industrial properties, the AUK Portfolio is comprised largely of institutional quality assets, Redefine says. Six of the properties are single-tenant, with the majority being multi-tenant.
Finalizing the deal for the portfolio will require Redefine shareholder approva. An extraordinary general meeting has been called for Sept. 25.
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