RDI REIT PLC RDI sells Bahnhof Altona Center, Hamburg (6613M)
18 September 2019 - 4:00PM
UK Regulatory
TIDMRDI
RNS Number : 6613M
RDI REIT PLC
18 September 2019
RDI REIT P.L.C.
("RDI" or the "Company" or the "Group")
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00BH3JLY32
LEI: 2138006NHZUMMRYQ1745
RDI sells Bahnhof Altona Center, Hamburg
RDI is pleased to announce that it has exchanged contracts with
Volksbank eG Braunschweig Wolfsburg to sell its Bahnhof Center in
Altona, Hamburg for EUR91.0 million ("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
4.6% and a 9.6% premium to the 28 February 2019 market value. The
Disposal is expected to complete on 31 December 2019 and remains
subject to certain conditions being satisfied.
Bahnhof Altona is a 15,000 sqm retail centre which is integrally
linked to the Altona train station and underground transport
network. The centre fronts the entrance to the station platforms
and comprises 22 stores across three levels and a 496 space
multi-storey car park. The centre produces net rental income of
approximately EUR4.5 million p.a. (GBP4.1 million p.a.) and is
anchored by Media Markt with other key tenants including Lidl,
Apcoa, BHG and Rossmann.
The property is currently financed through a banking facility
totalling EUR45.0 million at an all-in rate of 2.70% which is
anticipated to be repaid on completion. The net proceeds from the
transaction, following the repayment of this debt facility,
estimated capital gains tax of approximately EUR5.8 million and
certain transaction costs, is anticipated to be approximately
EUR39.0 million (GBP35.4 million).
In line with RDI's strategic objectives, the net proceeds will
be used to efficiently reduce leverage through a reduction of the
Group's revolving credit facility, that will create enhanced
headroom and liquidity. The Disposal will also result in a further
material reduction in RDI's retail exposure to approximately 35% of
the portfolio after accounting for the derecognition of the Aviva
shopping centre portfolio.
Further updates on RDI's disposal programme in respect of the
German portfolio will be provided with the release of its full year
results, scheduled to be published on 24 October 2019.
Mike Watters, CEO of RDI, commented:
"The sale of the Bahnhof Center in Hamburg is in line with our
stated strategy to reduce RDI's retail exposure and focus the
portfolio on the UK market. The sale price of EUR91.0 million
reflects a 9.6% premium to the last reported value for the centre
and was achieved following a competitive bidding process which drew
a number of institutional investors. As previously indicated, the
net proceeds from the sale of assets currently being marketed will
be deployed to reduce Group debt and strengthen the overall balance
sheet at a favourable time in terms of the Euro's relative strength
to Sterling."
For further information, please contact:
RDI REIT P.L.C.
Mike Watters, Stephen Oakenfull Tel: +44 (0) 20 7811
0100
FTI Consulting
UK Public Relations Adviser Tel: +44 (0) 20 3727
Dido Laurimore, Claire Turvey, Ellie Sweeney 1000
Instinctif Partners
SA Public Relations Adviser Tel: +27 (0) 11 447
Frederic Cornet 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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DISCKODBQBKDCCD
(END) Dow Jones Newswires
September 18, 2019 02:00 ET (06:00 GMT)
Rdi Reit P.l.c (LSE:RDI)
Historical Stock Chart
From Jul 2024 to Jul 2024
Rdi Reit P.l.c (LSE:RDI)
Historical Stock Chart
From Jul 2023 to Jul 2024