UK REIT watch: Redefine International buys Weston Favell shopping centre

iNVEZZ.com, Thursday, December 12: Britain’s newest real estate investment trust (REIT), Redefine International (LON:RDI) announced today that it had completed the acquisition of the Weston Favell shopping centre in Northampton. The property was bought from British insurance company Aviva for £84 million.

According to the REIT’s press release, Weston Favell comprises about 307‚763 sq ft of retail accommodation arranged over two floors with 1‚150 free parking spaces. Anchored by one of the largest Tesco Extra supermarkets in the UK‚ the centre has 56 retail units and seven kiosks let to various national and local retailers‚ producing a net rental income of £6.4 million a year.

Commenting on the purchase, Redefine International’s chief executive, Mike Watters, said: “Delivering a net initial yield (after acquisition costs) of 7.2 percent, this shopping centre provides strong income whilst presenting a number of asset management opportunities.”


Redefine International started trading as a UK REIT on both the London Stock Exchange and the Johannesburg Stock Exchange earlier this month (UK REIT watch: Redefine International becomes UK’s newest REIT). Since the change of its corporate status, the group’s stock has lost almost two percent. So far today, Redefine International’s shares have fallen 0.51 percent.

**As of 13:06 UTC, buy Redefine International shares at 49.75p.**
**As of 13:06 UTC, sell Redefine International shares at 49.25p.**
***Tritax Big Box buys £48.75 million distribution centre***
Another new UK REIT, Tritax Big Box (LON:BBOX), announced in a statement yesterday that it had bought one of J Sainsbury’s (LON:SBRY) main regional distribution hubs in Sherburn-in-Elmet, near Leeds.

The 585,000-sq-ft asset was purchased from a fund advised by Ekistics Property Advisors for a purchase price of £48.75 million, reflecting a net initial yield of 6.65 percent. The distribution centre was acquired with an unexpired lease term of approximately 13 years, which is subject to five yearly upward only open market rent reviews, according to the REIT’s statement. Tritax Big Box also said that the deal was funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.
“This is one of Sainsbury’s core regional distribution facilities servicing in excess of 200 stores in the North East… Tritax Big Box REIT PLC is delighted to have made this acquisition which is expected to provide an excellent income stream,” partner Colin Godfrey said in the REIT’s statement.
Tritax Big Box’s shares have gained 0.85 percent so far today.
**As of 13:14 UTC, buy Tritax Big Box shares at 102.50p.**
**As of 13:14 UTC, sell Tritax Big Box shares at 101.50p.**
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