JSE-listed RDI to sell UK retail parks of six assets for £156.9?million to M7 Real Estate
The proceeds of the sale will be used to reduce RDI's revolving credit facility by about £100 million.
JSE-listed RDI has announced a substantial asset disposal as part of its efforts to reduce risk and bolster its balance sheet.
The group plans to sell its UK retail parks portfolio of six assets for £156.9?million (R3.45?billion) to pan-European company M7 Real Estate.
RDI said in a statement that it anticipates the disposal to be finalised by mid-October. The proceeds will be used to reduce the revolving credit facility by about £100 million, providing a significant reduction in leverage.
About the transaction, RDI CEO Mike Watters said:
“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 £330 million of disposals, markedly reducing our exposure to the retail sector.”
The group also recently announced the disposal of the Schloss Strassen Center in Berlin, saying that it is focusing its attention on growing into the distribution and industrial property sectors and on its hotels and London serviced offices operating platform.
The portfolio being disposed of comprises Banbury Cross Retail Park, Banbury; St Davids Retail Park, Bangor; Milton Road Retail Park, Edinburgh; Queens Drive Retail Park, Kilmarnock; Priory Retail Park, Merton, London; and The Arches, Watford, London.