Johannesburg - Redefine International on Wednesday announced that it has completed the sale of four
German office assets for a gross consideration of €106 million. The properties, situated in Berlin, Dresden, Cologne and Stuttgart and totalling 45,145 square meters, are let to a German government-backed social insurance body on a combined weighted average unexpired lease term (WAULT) of just under seven years.
The assets, which were disposed of via a share sale, were held in a joint venture with the Menora Mivtachim Group, one of Israel's largest insurance and pension funds, since 2012.
The portfolio generated a total annual gross rental income of €8.1 million, of which €4.0 million was attributable to
Redefine International.
Mike Watters, chief executive of Redefine International said these four offices were identified for sale in line with the company's strategy to continuously improve the quality of its portfolio.
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"We are very pleased with the transaction having achieved an impressive 27 percent IRR over the investment period," Watters said.
"The proceeds from this successful and timely sale, which were enhanced by the current strength of the Euro, will be reinvested into value accretive assets and used to effectively reduce debt. This is in line with our stated aim and commitment to focus on delivering superior income-led total returns."
Redefine International is an income focused FTSE 250 UK Real Estate Investment Trust (UK-REIT) with a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.