RDI REIT PLC Disposal of Schloss-Strassen Center, Berlin (7281X)
September 02 2020 - 2:01AM
UK Regulatory
TIDMRDI
RNS Number : 7281X
RDI REIT PLC
02 September 2020
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 EUR65.5 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 EUR62.0 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 EUR4.7 million p.a. (GBP4.2 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 EUR50.5
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, Tel: +44 (0) 20 3727 1000
Ellie Sweeney
rdireit@fticonsulting.com
Instinctif Partners
SA Public Relations Adviser
Frederic Cornet Tel: +27 (0) 11 447 3030
RDI@instinctif.com
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
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END
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