2nd Sep 2020 10:48
(Alliance News) - RDI REIT PLC on Wednesday said it has sold the Schloss-Strassen Center in Berlin to UK-based private equity real estate fund manager Benson Elliot for EUR65.5 million.
RDI said the disposal aligns with its strategic decision to exit its German retail portfolio and reflects a 6.6% net initial yield assuming full purchaser's costs. It also represents a 16% discount to the Schloss-Strassen Center's market value as at February 29. The disposal includes transfer of an associated EUR62.0 million bank facilities maturing March 2021.
The Schloss-Strassen Center, a 18,600 square metre retail centre in south west Berlin, produces net rental income of around EUR4.7 million per annum.
The deal reduces RDI's overall retail exposure to 24.1% pro forma from 28.4% at February 29 while removing a near-term refinancing requirement which would have necessitated contribution of additional equity in a sector where RDI is trying to reduce exposure.
Chief Executive Mike Watters said: "The sale of the Schloss-Strassen Center in Berlin is in line with our stated strategy to reduce RDI's retail exposure and focus the portfolio on core assets in the UK market whilst strengthening the balance sheet. We are pleased to have successfully concluded this disposal, particularly against a highly challenging macro-economic backdrop, and to have made further progress on our withdrawal from the German market where we now have only EUR50.5 million of assets still subject to disposal, all of which are at various stages of negotiation."
Shares in RDI were down 1.2% at 85.00 pence in London on Wednesday, and down 2.2% in Johannesburg at ZAR18.96.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
RDI.L