RDI Reit sells German warehouses
The landlord is in the process of selling its German portfolio to focus on the UK.
London and Johannesburg Stock Exchange-listed landlord RDI, which is selling off its assets in Germany to focus on the UK, said on Thursday it had sold three warehouses in Germany for €34.2 million (about R650 million), having now moved to dispose of more than half that portfolio.
Landlords in Europe are grappling with the rise of e-commerce, and now the effects of the coronavirus pandemic.
The sale of the three warehouses represents a 3.5 percent discount to their market values as of August 2019; however, given the transaction structure, the purchaser has taken on the inherent tax liabilities associated with the portfolio, the group said.
About €164.9 million of the group's German assets have been sold or exchanged for sale representing about 55 percent of the total German retail portfolio.
“These latest disposals are in line with RDI’s stated strategy to further reduce its exposure to retail and focus the portfolio on core assets in the UK market while strengthening the balance sheet,” said CEO Mike Watters (pictured).
“We are pleased with progress made to date in addition to our active sales pipeline, although remain cognisant of the unprecedented macroeconomic backdrop that has emerged,” Watters said.