RDI REIT completes £26m logistics deal

RDI REIT has completed a £26m forward-funding agreement to acquire two distribution units in Bicester, Oxfordshire, with Albion Land. The two units, which cover 288,000 sq ft in total, will be built speculatively on 13.5 acres of land that RDI has purchased at a site that is part of the Link 9 industrial and distribution development near the M40. The eight month-long construction of the first phase is to begin immediately with phase 2 anticipated to commence before May 2019 with completion in late 2019. RDI said it was already in talks with potential occupiers and anticipated a yield on cost of 6.5% once let. In addition RDI has completed the disposal of its 60,177 sq ft fully let Lochside office in Edinburgh for £13.1m, representing a net initial yield of 5.9% and a 13.7% premium to the last reported market value. The asset was originally acquired as part of the company’s AUK portfolio acquisition in March 2016 for £11m, at which point it was 18% vacant. Mike Watters, chief executive of RDI REIT, said: “This acquisition once again highlights our disciplined approach to improving the quality of our income-focused portfolio, with disposal proceeds being promptly redeployed into growth opportunities. “The acquisition of high-quality distribution assets in Bicester, through a forward-funding agreement, presents a clear opportunity to increase our exposure to a sector with strong structural support and rental growth prospects, at an attractive entry price.” To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette