RDI.L Regulatory News (RDI)

REDEFINE INTERNATIONAL P.L.C.

("Redefine International" or the "Company")

(Registered number 010534V)

LSE share code: RDI

JSE share code: RPL

ISIN: IM00B8BV8G91

ACQUISITION OF REMAINING INTEREST IN EARLS COURT HOLIDAY INN EXPRESS HOTEL

Redefine International today announces that it has, through its 71% held subsidiary Redefine Hotel Holdings Limited ("RHH"), entered into a contract to purchase the remaining 40% of the issued shares in BNRI Earls Court Limited ("BNRI"), which RHH does not already own, from Camden Lock and Earls Court LLP for a purchase consideration of £6.3 million (the "Transaction"). BNRI, which is currently 60% held by RHH, owns the 150 bedroom Holiday Inn Express Hotel in Earls Court, London (the "Hotel"). The purchase consideration for the Transaction implies a value of £28.1 million for the Hotel.

The Transaction is conditional on a proposed refinancing of the entire hotel property portfolio being concluded with the existing lender, which is currently in progress.

The Hotel forms part of RHH's existing portfolio of seven hotels. It is well located, close to the Earls Court Exhibition Centre and Arena and the Olympia Exhibition Centre. It is held under freehold title and is subject to a franchise agreement with IHG Hotels Limited until 2023. RHH completed a 50 bedroom extension in November 2012 and the Hotel has performed extremely well, with underlying operating earnings 15% ahead of the budget for the six months to 28 February 2014.

The purchase consideration of £6.3 million for the remaining 40% shareholding in BNRI will be funded by utilising part of the proceeds from the Company's recent share placement, together with further co-investment, on a pro rata basis, by the existing co-investors in RHH. The purchase consideration reflects a net initial yield of 7.0%.

Commenting, Mike Watters, Chief Executive of the Company said:

"We referred to this potential transaction during our recent successful £54.7 million capital raise and are pleased to be making the final steps towards deploying the capital now. The limited service hotel sector continues to thrive in pockets of London, and this, combined with our in-depth knowledge of the performance of this particular hotel and our ongoing belief in the potential of this sector, supports our confidence that the Transaction will deliver a high quality income to our investors."

For further information:

Notes to editors:

Redefine International is a UK-REIT with a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.