RDI REIT PLC Disposal of Schloss-Strassen Center, Berlin (7281X)

TIDMRDI

RNS Number : 7281X

RDI REIT PLC

02 September 2020

RDI REIT P.L.C.

("RDI" or the "Company")

(Registered number 010534V)

LSE share code: RDI

JSE share code: RPL

ISIN: IM00BH3JLY32

LEI: 2138006NHZUMMRYQ1745

Disposal of Schloss-Strassen Center, Berlin

RDI, the income focused UK Real Estate Investment Trust ("UK-REIT"), is pleased to announce the disposal of the Schloss-Strassen Center, Berlin for EUR65.5 million to Benson Elliot, a UK-based private equity real estate fund manager, ("the Disposal").

The Disposal, which is in line with RDI's strategic decision to exit its German retail portfolio, reflects a net initial yield of 6.6% assuming full purchaser's costs and a 16% discount to the 29 February 2020 market value. The Disposal includes the transfer of the associated EUR62.0 million bank facility with a maturity date of 31 March 2021.

The Schloss-Strassen Center is a 18,600 sqm retail centre located on the main retail pitch in the Steglitz-Zehlendorf area in South West Berlin and is integrally linked to the underground transport network. The centre produces net rental income of approximately EUR4.7 million p.a. (GBP4.2 million p.a.) and is anchored by Primark and Rewe, with other key tenants including Contipark, Smyths Toys and Fitness First.

The transaction reduces the Group's overall retail exposure to 24.1% on a pro-forma basis (29 February 2020: 28.4%) and 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.

Mike Watters, CEO at RDI, commented:

"The sale of the Schloss-Strassen Center in Berlin is in line with our stated strategy to reduce RDI's retail exposure and focus the portfolio on core assets in the UK market whilst 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 EUR50.5 million of assets still subject to disposal, all of which are at various stages of negotiation."

For further information:

 
RDI REIT P.L.C. 
Mike Watters, Stephen Oakenfull  Tel: [phone] 
FTI Consulting 
UK Public Relations Adviser 
Dido Laurimore, Claire Turvey,   Tel: [phone] 
 Ellie Sweeney 
 [e-mail] 
Instinctif Partners 
SA Public Relations Adviser 
Frederic Cornet                   Tel: [phone] 
 [e-mail] 
JSE Sponsor 
Java Capital                     Tel: + 27 (0) 11 722 3050 
 

Note to editors:

About RDI

RDI is an income focused UK-REIT with a diversified portfolio invested principally in the UK. The investment approach is driven by an in depth understanding of occupational demand including the impact of technology, transport and infrastructure investment. The portfolio has been repositioned in recent years to increase its weighting to London and the South East and to provide greater exposure to our leading hotel and serviced office operating platforms.

RDI is committed to delivering attractive income led total returns across the real estate cycle. The current strategic objectives of a lower leverage capital structure and more focused allocation of capital are targeted at delivering an industry leading and sustainable income return.

RDI is a UK Real Estate Investment Trust (UK-REIT) and holds a primary listing on the London Stock Exchange and a secondary listing on the JSE. The Company is included within the EPRA, GPR, JSE All Property and JSE Tradeable Property indices.

   For more information on RDI, please refer to the Company's website   www.rdireit.com 

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September 02, 2020 02:01 ET (06:01 GMT)