23 Jul 2020 07:00
RDI REIT P.L.C.
("RDI" or the "Company")
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00BH3JLY32
LEI: 2138006NHZUMMRYQ1745
Link 9 Bicester fully let to Arrival
RDI, the income-focused UK-REIT, announces that it has let its recently completed 168,154 sq ft industrial and distribution development at Unit 1B, Link 9, Bicester, to Arrival Automotive Ltd.
The UK-based electric van maker will now occupy both units 1A and 1B totalling approximately 288,000 sq ft. The deal follows a competitive bidding process and means the scheme is now fully let.
The new lease will run co-terminus with Arrival Automotive's existing 15 year lease on unit 1A, which was agreed in December 2019. Both leases expire in December 2034 with no breaks, at a total annual rent of £2,335,000, subject to five-yearly reviews to the higher of Open Market Rental Value and RPI capped and collared at 2% and 4%. The development and subsequent lettings have achieved a 7.5% yield on cost.
Arrival Automotive's relocation to Bicester follows the company achieving an implied valuation of over £3 billion, following the sale of a 3% stake in the business to South Korean car giants Hyundai and Kia, and a supply contract with US delivery company United Parcel Service (UPS) for 10,000 purpose-built electric vans.
The newly completed Link 9 estate comprises 530,000 sq ft of industrial and warehouse accommodation spread across 11 units on a 40 acre site. The scheme is strategically located for distribution occupiers by junctions 9 and 10 of the M40, providing rapid access to the national motorway network and commercial hubs of London, Oxford and Birmingham.
Adrian Horsburgh, Property Director at RDI, commented: "Arrival Automotive is an exciting and growing company which has an important role to play in helping cities meet net-zero emissions targets with the provision of their game changing electric buses and delivery vans. We are thrilled that they have decided that Link 9 is the right home to help them achieve their growth ambitions, whilst at the same time it clearly supports our decision to press ahead with the forward funding of this asset 18 months ago."
For further information:
RDI REIT P.L.C. | |
Mike Watters, Stephen Oakenfull | Tel: +44 (0) 20 7811 0100 |
FTI Consulting | |
UK Public Relations Adviser | |
Dido Laurimore, Claire Turvey, Ellie Sweeney rdireit@fticonsulting.com | Tel: +44 (0) 20 3727 1000 |
Instinctif Partners | |
SA Public Relations Adviser | |
Frederic Cornet RDI@instinctif.com | Tel: +27 (0) 11 447 3030 |
JSE Sponsor | |
Java Capital | Tel: + 27 (0) 11 722 3050 |
Note to editors:
About RDI
RDI is an income focused UK-REIT with a diversified portfolio invested principally in the UK. The investment approach is driven by an in depth understanding of occupational demand including the impact of technology, transport and infrastructure investment. The portfolio has been repositioned in recent years to increase its weighting to London and the South East and to provide greater exposure to our leading hotel and serviced office operating platforms.
RDI is committed to delivering attractive income led total returns across the real estate cycle. The current strategic objectives of a lower leverage capital structure and more focused allocation of capital are targeted at delivering an industry leading and sustainable income return.
RDI is a UK Real Estate Investment Trust (UK-REIT) and holds a primary listing on the London Stock Exchange and a secondary listing on the JSE. The Company is included within the EPRA, GPR, JSE All Property and JSE Tradeable Property indices.
For more information on RDI, please refer to the Company's website www.rdireit.com