RDI REIT PLC (LON:RDI) said it has exchanged contracts for the disposal of its UK retail parks portfolio comprising six sites for £156.9mln to M7 Real Estate.
The sale price reflects a 3% discount to the last reported value on February 29, 2020, and follows the sale of its Schloss Strassen Center in Berlin last week.
Discussions are underway over the disposal of a further €50.5mln worth of German shop assets, the trust added.
The UK retail parks to be sold generated gross annualised rental income of £12.5ln and include sites at Banbury, Bangor, Edinburgh, Kilmarnock, Merton and Watford.
Proceeds from the disposal will reduce a revolving credit facility by £100mln with the remaining £56.9mln to be held as cash within the group.
Cash and facility headroom will increase to around £240.mln following the sale with a pro-forma loan-to-value ratio of 30.2% compared to 41.8% in February.
In a statement, Mike Watters, RDIs chief executive said: "Together with the disposal of Schloss Strassen Center in Berlin just last week, we have taken a substantial step forward in the implementation of our portfolio strategy in a very short space of time and against a challenging backdrop.
“In just 18 months since announcing our strategic review, we have undertaken around £330mln of disposals.”
Brokers hail 'transformational' deals
Berenberg notes that the UK portfolios annualised rental income of £12.5m, weighted average unexpired lease length of 7.3 years and occupancy of 98.4% stand out versus the sector, highlighting the strength of RDIs asset management capability.
The sale should be taken positively versus the UK retail park capital value index, which has fallen by 11.1% in the five months to July 2020Read More – Source