RDI REIT offloads €91m Hamburg centre
RDI REIT has agreed to sell its Bahnhof Altona Center in Hamburg for €91m (£80.7m), as part of its strategy to exit its German retail portfolio.
The company has exchanged contracts to sell the Altona property to Volksbank eG Braunschweig Wolfsburg.
The disposal reflected a net initial yield of 4.6%. RDI said it would be sold at a 9.6% premium to 28 February market value.
RDI REIT has agreed to sell its Bahnhof Altona Center in Hamburg for €91m (£80.7m), as part of its strategy to exit its German retail portfolio.
The company has exchanged contracts to sell the Altona property to Volksbank eG Braunschweig Wolfsburg.
The disposal reflected a net initial yield of 4.6%. RDI said it would be sold at a 9.6% premium to 28 February market value.
It is expected to complete on 31 December, and remains subject to “certain conditions being satisfied”.
The 161,500 sq ft shopping centre generates net rental income of around €4.5m per annum and is anchored by Media Markt. Other key tenants include Lidl, Apcoa, BHG and Rossmann.
It is financed through a €45m facility at an all-in rate of 2.7%, which is anticipated to be repaid on completion.
The net proceeds from the deal, following repayment of the debt facility, estimated capital gains tax of around €5.8m and transaction costs, is expected to total some €39m. These will be used to reduce RDI’s leverage.
RDI’s retail exposure will be reduced to equal around 35% of its portfolio, after the deal completes.
Mike Watters, chief executive of RDI, said: “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.
“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.”
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