UK real estate investment trust Redefine International has completed the sale of the Lyon House and Equitable House sites Harrow, northwest London for GBP13.77m to Redrow Homes.
The deal represents a 12.4 per cent premium to book value as at 31 August 2013.
In addition, the company has agreed a share of sales revenues above agreed aggregate thresholds.
Lyon House was previously occupied by HMRC until June 2010. Following a successful site assembly and planning process, Redefine secured planning permission for 238 private residential units, 49 affordable housing units and approximately 33,000 sq ft of commercial space.
The disposal reflects a positive recycling of capital following a successful asset management strategy to convert the sites from commercial to predominantly residential use. The profit share provisions secure an ongoing interest in the development against an improving residential market.
Mike Watters, chief executive of Redefine International, says: “This disposal, at a significant premium to book value, demonstrates how we can add and crystallise immediate value through successful asset management, whilst structuring the deal to ensure shareholders are able to benefit from the improving residential market.”