2 Sep 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
Disposal of Schloss-Strassen Center, Berlin
RDI, the income focused UK Real Estate Investment Trust ("UK-REIT"), is pleased to announce the disposal of the Schloss-Strassen Center, Berlin for €65.5 million to Benson Elliot, a UK-based private equity real estate fund manager, ("the Disposal").
The Disposal, which is in line with RDI's strategic decision to exit its German retail portfolio, reflects a net initial yield of 6.6% assuming full purchaser's costs and a 16% discount to the 29 February 2020 market value. The Disposal includes the transfer of the associated €62.0 million bank facility with a maturity date of 31 March 2021.
The Schloss-Strassen Center is a 18,600 sqm retail centre located on the main retail pitch in the Steglitz-Zehlendorf area in South West Berlin and is integrally linked to the underground transport network. The centre produces net rental income of approximately €4.7 million p.a. (£4.2 million p.a.) and is anchored by Primark and Rewe, with other key tenants including Contipark, Smyths Toys and Fitness First.
The transaction reduces the Group's overall retail exposure to 24.1% on a pro-forma basis (29 February 2020: 28.4%) and removes a near term refinancing requirement which would have required the contribution of additional equity into a sector that the Company is seeking to reduce its exposure to.
Mike Watters, CEO at RDI, commented:
"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 €50.5 million of assets still subject to disposal, all of which are at various stages of negotiation."
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