Starwood Capital Group acquires 111.9 million shares in Redefine Properties RDI REIT

FD Leon Kok says disposal of Redefine's RDI shares will reduce its loan-to-value ratio.

Redefine Properties has concluded a deal for global private investment firm Starwood Capital Group to acquire its 111.9 million shares in RDI REIT for 95 pence per share. 

The disposal, which will generate £106.3 million (around R2.3 billion), forms part of Redefine’s plan to strengthen its balance sheet to offset the ongoing uncertainty and negative effects of Covid-19.

Redefine FD Leon Kok said that the disposal of the RDI shares and the settlement of the bonds will reduce the company’s loan-to-value ratio by 1.1 percent. 

Redefine CEO Andrew Konig said the exit out of RDI substantially advances the company’s intention of simplifying and solidifying its asset platform, as well as eliminating multiple entry points for South African equity investors into the same investment opportunities. It will also improve the company’s risk profile.

He said that the strategy to strengthen its balance sheet, recycle non-core assets and boost liquidity continues to place the company in a strong position to withstand the risks and challenges of the current uncertain operating environment. 

 “In the prevailing environment, the knowns are outweighed by evolving unknowns. Our intention is to ensure we can manage the variables under our control while being extremely well placed to benefit once conditions improve,” said Andrew.