Stenprop Limited Disposal of Berlin Shopping Centre for EUR30.8M (9036J)
December 29 2020 - 2:00AM
UK Regulatory
TIDMSTP
RNS Number : 9036J
Stenprop Limited
29 December 2020
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
29 December 2020
DISPOSAL OF BERLIN SHOPPING CENTRE FOR EUR30.8 MILLION
Hermann Quartier sale will conclude EUR95 million of non-core
disposals in the financial year to date at an average of 18% above
March valuation, providing further capital to recycle into
multi-let industrial
Stenprop, the UK multi-let industrial ("MLI") property company,
announces that it has exchanged contracts on the sale of its
freehold interest in the Hermann Quartier shopping centre in
Berlin, Germany (the "disposal") to Munich based firm ILG Capital
GmbH, acting on behalf of the regulated special property fund ILG
Einkaufen D managed by IntReal International Real Estate
Kapitalverwaltungsgesellschaft mbH, for EUR 30.8 million. The
disposal price is in line with the 30 September book value^ and
reflects a 19% premium to the 31 March 2020 valuation.
The disposal will conclude the sale of the Company's food-led
Berlin retail portfolio following the sale of Neuc lln Carrée
retail park earlier this year and the recent exchange of contracts
on the sale of the Victoria Centre. It further progresses
Stenprop's strategy to become a 100% UK MLI business by March 2022,
with the Company's MLI assets expected to rise from 64% to 72% of
Stenprop's total portfolio once the sale completes (assuming
earlier completion of the sale of the Victoria Centre and based on
asset valuations as at 30 September 2020 and subsequent purchase
prices of MLI acquisitions).
Net proceeds from the sale after deduction of anticipated
transaction costs, repayment of debt and property taxes are
expected to be EUR19 million, which Stenprop intends to use to fund
further acquisitions in the MLI sector.
Totalling 8,274 sqm of gross lettable space, Hermann Quartier is
a covered retail centre prominently located above the Hermanstrasse
S- and U-Bahn station. The weighted average rental is currently
circa EUR15.20 per sqm.
James Wakelin, Head of Debt and Special Projects, commented:
"Exiting the Berlin retail portfolio represents another significant
milestone towards Stenprop's transition to become a fully focused
UK multi-let industrial REIT and is the culmination of a successful
year in our disposal programme. Our MLI portfolio has performed
well throughout the pandemic, providing further evidence of the
resilience of the asset class. We look forward to putting the
proceeds of this sale to work into our strong pipeline of
opportunities as we remain on target to be 100% MLI by the end of
the next financial year."
Completion of the disposal is expected to occur upon
satisfaction of the last conditions precedent described below and
by no later than six months from the date of exchange, following
which the disposal price will be paid to the seller. Failure to
complete due to a default by the purchaser will result in the
seller retaining the deposit amount of EUR3.08 million which was
paid by the purchaser into an escrow account on 28 December 2020.
Either party may terminate the disposal agreement should the
property suffer significant structural damage resulting in damages
or rent losses exceeding 10% of the purchase price or rent losses
of more than 20% over a period of six months.
The disposal agreement contains market standard representations
and warranties for a deal of this size and nature. A limited
13-month guarantee capped at EUR1.3 million was provided by a
company of the Stenprop group to the purchaser in respect of claims
against and for certain tax liabilities of the seller under the
disposal agreement.
Completion of the disposal is subject to the following
conditions precedent:
-- Confirmation that the municipality has not exercised its pre-emption right;
-- Registration of a priority notice in favour of the purchaser
in the land registry; and
-- Deletion of existing encumbrances.
^ The property was valued at 30 September 2020 at the sales
price of EUR30.8 million by the directors of the Company. The
directors of the Company are not independent external valuers and
are not registered as professional valuers in terms of the Property
Valuers Professions Act, No.47 of 2000 or with the Royal
Institution of Chartered Surveyors. The net operating profit
attributable to the property for the six months ended 30 September
2020 was EUR0.67m. This information has been extracted from
Stenprop's interim results for the six months ended 30 September
2020 which were prepared under International Financial Reporting
Standards.
Stenprop has a primary listing on the Main Board of the
Johannesburg Stock Exchange and a listing on the Specialist Fund
Segment of the Main Market of the London Stock Exchange. This
disposal is classified as a category 2 transaction in terms of the
JSE Listings Requirements. Accordingly, it is not subject to
approval by shareholders.
For further information:
Stenprop Limited +44(0)20 3918 6600
Paul Arenson (paul.arenson@stenprop.com)
Julian Carey (julian.carey@stenprop.com)
James Beaumont (james.beaumont@stenprop.com)
Numis Securities Limited (Financial Adviser) +44(0)20 7260
1000
Hugh Jonathan
Vicki Paine
FTI Consulting (PR Adviser) +44(0)20 3727 1000
Richard Sunderland
Dido Laurimore
Richard Gotla
Neel Bose
Stenprop@fticonsulting.com
Java Capital +27 (0)11 722 3050
(JSE Sponsor)
About Stenprop:
Stenprop is a UK REIT listed on the LSE and the JSE. The
objective of the Company is to deliver sustainable growing income
to its investors. Stenprop's investment policy is to invest in a
diversified portfolio of UK multi-let industrial (MLI) properties
with the strategic goal of becoming the leading MLI business in the
UK. For further information, go to www.stenprop.com.
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