9th Feb 2021 10:43
(Alliance News) - RDI REIT PLC on Tuesday said it has reduced its retail exposure further with the sale of two properties, one in England and the other in Germany.
The London and Johannesburg-listed real estate investment trust confirmed the sale of West Orchards shopping centre in Coventry, England, for GBP4.9 million, or ZAR98.8 million, to an unnamed buyer.
West Orchards' guide price was GBP5.5 million.
The sale is expected to have a nominal impact on the company's net asset value of approximately GBP1.9 million, RDI said, and leaves just one remaining retail asset in the UK, St George's shopping centre in Harrow, Greater London.
Chief Executive Stephen Oakenfull said: "West Orchards, Coventry has faced a number of significant challenges including its exposure to Debenhams as well as the general impact from lock down restrictions due to Covid-19. As part of our ongoing strategy, our strict discipline in terms of capital allocation and decisive action around selling legacy assets continues to enhance the quality of the portfolio with a full exit from retail now in sight."
RDI additionally disposed of "a small retail asset" in Molln, Germany, for EUR3.8 million, or ZAR68.0 million.
These disposals provide further progress towards achieving a full exit from the retail sector during 2021, whilst also contributing to the further strengthening of the company's balance sheet, RDI said.
RDI REIT shares were down 0.6% at ZAR17.00 each in Johannesburg on Tuesday, and were down 1.5% at 83.70 pence each in London.
By Greg Roxburgh; [email protected]
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