Income-focused UK-REIT RDI has completed a forward-funding agreement to buy two distribution units totalling 26,800 sqm in Bicester for £26m, it said on Thursday.

It also completed the sale of its Edinburgh Lochside for £13.1m, representing a net initial yield of 5.9% and a 13.7% premium to the last reported market value.

The transactions were both in line with RDI's strategy of recycling capital out of mature assets and into new growth opportunities.

Phase 1 construction would commence on the Bicester sites "immediately" with an approximate eight-month development programme. Phase 2 was expected to start before next May with completion scheduled for late 2019.

The transaction would provide an opportunity to increase RDI's exposure to well-located modern distribution units at an anticipated yield on cost of 6.5% once let.

The company would provide further details of the acquisition at its year-end results presentation on 25 October.

At 8:02am: (LON:RDI) RDI REIT PLC share price was -0.25p at 32.5p