RDI Reit sells German asset 

It sells Bahnhof Center in Hamburg for EURO91 million. 

RDI Reit, a real estate company listed on the Johannesburg Stock Exchange, said it was making progress in offloading its German assets after selling its Bahnhof Center in Hamburg for €91 million (about R1.47 billion). 

RDI, formerly known as Redefine International, said Wednesday that it has agreed to sell its Bahnhof Altona Center in Hamburg, Germany to Volksbank eG Braunschweig Wolfsburg

The retail property is a 15,000 square metre retail centre, comprising 22 stores across three levels and a 496 space multi-storey car park.

The sale of the retail property, which expected to be completed by the end of 2019, comes as the company shifts its focus to the UK.

The sales price, the result of a competitive bidding process, reflected a 9.6 percent premium to the last reported value for the centre, RDI CEO Mike Watters (pictured) said in a statement.

“As previously indicated, the net proceeds from the sale of assets currently being marketed will be deployed to reduce group debt and strengthen the overall balance sheet at a favourable time in terms of the euro’s relative strength to sterling,” Mike said.

The property is financed through a banking facility of €45 million at an all-in rate of 2.7 percent, which is expected to be repaid on the sale's completion, anticipated to be on December 31. RDI expects net proceeds from the property disposal to be €39 million, after the debt facility repayment, capital gains tax and transaction costs.

The company will use the proceeds to reduce leverage by reducing its revolving credit facility, giving RDI more enhanced headroom and liquidity.

RDI is expected to release its results to end-July on October 24. As of the end of February, the company had a portfolio of £1.61 billion (R29 billion), with 75 percent of this in the UK.

The company had net debt of £784.5 million (R14.3 billion) at the end of February.