US real estate investment trust Realty Income, through its wholly owned subsidiary RI UK 1 Limited, has agreed to acquire a retail property portfolio from Ediston Property Investment Company, a UK-listed real estate investment trust, for approximately £196.8 million (after agreed deductions of approximately £4m).
William Hill, Chairman of Ediston Property Investment Company, commented: “The board was very pleased with the interest shown in the company, with proposals being received from a number of potential counterparties. Having considered multiple options, and after detailed analysis, the board determined a sale of the property portfolio to Realty Income was the best means of maximising shareholder value. The board unanimously considers the disposal to be in the best interests of the company and its shareholders as a whole and recommends that shareholders vote in favour of the resolution at the general meeting.”
As at 6 September 2023, the property portfolio comprised 11 well-let and operational, convenience-led retail warehouse assets located across the UK which are let off affordable rents.
The property portfolio has been assembled by the investment manager since the company’s launch on 28 October 2014. The key individuals at the investment manager responsible for the property portfolio are Danny O’Neill and Calum Bruce.
As at 6 September 2023, the 1.18 million sq. ft. portfolio was let to a diversified base of 64 tenants over 108 units, with an aggregate contracted market rent of approximately £16.4 million per annum, delivering an average rent per sq. ft. of £13.97.
As at 30 June 2023, Realty Income held, through RI UK 1 Limited and its subsidiaries, 241 properties in the UK, with a total leasable space of approximately 23 million sq. ft. As at 6 September 2023, Realty Income had a market capitalisation of approximately US$39.1 billion.
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