RDI sells 127 Charing Cross Road, London for £59.25m

RDI sells 127 Charing Cross Road, London for £59.25m
Charing Cross Road

UK Real Estate Investment Trust RDI has completed the disposal of 127 Charing Cross Road, London for £59.25 million to Nomura Real Estate UK Limited.

The disposal price reflects a 1 per cent premium to the 31 August 2020 valuation, a net initial yield of 3.1 per cent, based on the contracted rental income, and a capital value per of £1,481 per sq ft on the existing area.

”The property was acquired as part of the AUK portfolio acquisition in March 2016 for £42.6 million. The disposal price therefore reflects a 39.1 per cent increase in value since acquisition,” said RDI in a statement.

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“This disposal marks the conclusion of a well-executed and successful asset management plan designed to enhance the value of an income generating asset. We believe that the sale captures a significant proportion of the asset’s potential value and provides us with the ability to recycle capital into opportunities with stronger risk-adjusted returns,” said Stephen Oakenfull, CEO of RDI.

“In the meantime, the proceeds of this transaction further strengthen the balance sheet where we now have cash and available facilities totalling approximately £275 million to execute on our strategy.”