Redefine property company offices in Rosebank Johannesburg. Photo by Simphiwe Mbokazi
JOHANNESBURG - Listed property company RDI, formerly named Redefine International, has exchanged contracts for the disposal of City Point office property in Leeds in the UK for £26.05million (R443.4m). 

RDI said yesterday the property, which has been acquired by West Midlands Pension Fund, delivers total gross annualised rental income of £1.6m, with a weighted average unexpired lease term of 3.7 years. 

It said the disposal was in line with RDI’s stated strategy of recycling capital out of mature assets and into new growth opportunities. 

The company said the 5699m² office was originally acquired as part of the its Aegon UK (AUK) portfolio acquisition in March 2016 for £21.6m with a more than 17percent vacancy. Mike Watters, the chief executive of RDI, said the disposal represented yet another example of delivering value from the AUK acquisition. 

“After two years of owning this asset, we have delivered an excellent 20.6percent premium to the acquisition price, while also de-risking the portfolio."