Redefine International (RDI) has announced that it has completed the sale of four German office assets for a gross consideration of €106m. The assets, which it says were disposed of via a share sale, were held in a joint venture with the Menora Mivtachim Group (Menora).
RDI has earned an IRR of 27% on the portfolio
The Company’s 49% proportionate share reflects an 8.6% premium to the book value. RDI says that it is intended that its net proceeds of €24.9m, which includes a performance fee of €2.4m, will be reinvested into value accretive opportunities and used to reduce debt. With the completion of the transaction, RDI has earned an IRR of 27% over the investment period.
JV saw annual income of €4.0m for RDI
The properties, situated in Berlin, Dresden, Cologne and Stuttgart, total 45,145 sqm (485,937 sqft), and are let to a German government-backed social insurance body, VBG, on a combined WAULT of just under seven years. The portfolio generated a total annual gross rental income of €8.1m of which €4.0m was attributable to Redefine International.
About Redefine International
Redefine International describes itself as an income focused FTSE 250 UK Real Estate Investment Trust (UK-REIT) committed to delivering superior distributions to its shareholders throughout the property cycle. It says that its income driven total returns are underpinned by a diversified portfolio, together with an efficient capital structure.
Redefine International completes €106m disposal of German office portfolio : RDI