PRETORIA - Listed Redefine International has agreed to dispose of its German retail portfolio for €205million (R3.37 billion).
The company said yesterday that it had exchanged contracts with Patrizia Immobilien AG for the sale of the Leopard German supermarket portfolio, comprising 66 retail properties, including a mixture of stand-alone supermarkets, food store anchored retail parks and cash and carry stores totalling more than 138000m² of lettable area.
The disposal, which includes the repayment of e86.1m of debt facilities, was expected to be completed next month.
Mike Watters, the chief executive of Redefine International, said the opportunistic disposal capitalises on an exceptionally strong German investment market, resulting in a 10.8percent or e20million premium achieved on book value and a 12percent premium to the price paid for the acquisition of a controlling interest in April this year.
Watters said Redefine International’s exposure to Germany would decline following the deal from 27percent to 18percent and in line with their strategy, they were consistently looking to realise value by recycling capital at attractive prices.
He said they anticipated reinvesting the proceeds into the UK, where they were witnessing some particularly attractive investment opportunities.
“However, we remain committed owners of and investors in properties that demonstrate strong fundamentals, which coupled with an experienced team of local asset managers, ensures Germany remains a strategic market for us,” he said.
Watters confirmed Redefine International was currently in exclusive negotiations to acquire a portfolio of high-quality assets which, if acquired, would utilise the majority of the disposal proceeds.
“The income yield is expected to be commensurate with the yield achieved on the disposal of the Leopard portfolio and will be accretive to shareholder returns over the medium term.
“However, there can be no guarantee that such acquisition will proceed to completion and a further announcement will be made by the company in due course,” he said.
- BUSINESS REPORT