Redefine International has announced that it has reached a conditional agreement to acquire control of the German Leopard Portfolio joint venture, in which it holds an existing 50 per cent. equity interest, for an aggregate consideration of €49 million (€49.4 million including transaction costs). Following the acquisition, Redefine International will hold an effective 94 per cent controlling interest in the portfolio, whilst providing 100 per cent. of its non-bank financing requirements by way of shareholder loans. The consideration will be funded from cash resources. The Portfolio’s existing debt facilities will be retained and reflects an overall portfolio leverage of 49 per cent.
Redefine International says that the Leopard Portfolio comprises 66 German retail properties generating gross rental income of €13.9 million, of which 99.2 per cent. is indexed to between 60 – 70 per cent. of German CPI subject to indexation reaching a cumulative hurdle of 10 per cent. The portfolio is independently valued at €175.5 million reflecting a net initial yield of 7.4 per cent. The consideration of €49.0 million reflects Redefine International taking on existing debt facilities totalling €86.1 million (€43.1 million being the Company’s existing share). Redefine International says that the facilities have an average all-in cost of 1.4 per cent. per annum which supports a 10 per cent. geared income return on the total consideration payable by the Group, including transaction costs.
Redefine International to acquire control of Leopard portfolio for €49m : RDI