RDI has announced the disposal of the Schloss-Strassen
Center in Berlin for €65.5 million to Benson Elliot, a UK-based
private equity real estate fund manager.
In line with RDI’s strategic decision to exit its German retail portfolio, the disposal reflects a net initial yield of 6.6% assuming full purchaser’s costs and a 16% discount to the 29th of February 2020 market value.
The disposal includes the transfer of the associated €62.0 million
bank facility with a maturity date of 31st of March 2020.
The Schloss-Strassen Center is a 18 600 square meter retail
center located on the main retail pitch in the Steglitz-Zehlendorf area in
South West Berlin and it is integrally linked to the underground transport
network. The centre produces net rental income of approximately €4.7 million
per annum (£4.2 million per annum) and it is anchored by Primark and Rewe.
Other key tenants include Contipark, Smyths Toys and Fitness First.
This transaction reduces the group’s overall retail exposure to
24.1% on a pro-forma basis (29th of February 2020: 28.4%) and it
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.
CEO of RDI, Mike Watters says the sale of the Schloss-Strassen
Center is in line with the company’s stated strategy to reduce RDI’s retail
exposure and to focus the portfolio on core assets in the UK market while
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”.
Source: Propertywheel.co.za | https://propertywheel.co.za/2020/09/rdi-announces-disposal-of-berlin-retail-centre-to-reduce-exposure/