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Redefine International agrees disposal of German retail portfolio for €205 million
REDEFINE INTERNATIONAL P.L.C.
(Incorporated in the Isle of Man)
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00B8BV8G91
(“Redefine International” or “the Company”)
REDEFINE INTERNATIONAL AGREES DISPOSAL OF GERMAN RETAIL PORTFOLIO FOR €205 MILLION
-Sale price represents 10.8% premium to book value-
Redefine International, the FTSE 250 income focused UK-REIT, announces the successful exchange of
contracts with PATRIZIA Immobilien AG for the sale of the Leopard (German supermarket) Portfolio with
completion anticipated to take place in December 2017.
The consideration will reflect a purchase price of €205.0 million, reflecting a 10.8% (€20 million) premium
to the 31 August 2017 book value. This opportunistic disposal capitalises on an exceptionally strong
investment market and an approximate 11% increase in the value of the Euro relative to Sterling over the
investment period.
The Leopard Portfolio comprises 66 German retail properties including a mixture of stand-alone supermarkets,
foodstore anchored retail parks and cash & carry stores totalling over 138,000 square metres of lettable area.
Due to the granularity of the portfolio, its disposal will see the Company’s average lot sizes increase
significantly, whilst the portfolio will show an increased weighting to locations and sectors where the
Company expects to benefit from higher rates of growth to support our medium-term target of between 2%
and 5% rental income growth.
The disposal will include the repayment of €86.1 million of debt facilities, with a weighted average cost of
debt of 1.4%. The portfolio’s annualised net rental income of €12.7 million reflects a net initial yield of 5.8%
on the sales price and an approximate 8.3% yield on equity.
The consideration is payable in cash and the Company intends to recycle the disposal proceeds into new
investments which are in line with its stated strategy of enhancing the quality of the portfolio and its growth
prospects. The Company intends to reinvest at lower leverage than the Company’s last reported LTV of 50%.
A number of investment opportunities have already been identified which are at various stages of due
diligence. In particular, the Company is currently in exclusive negotiations to acquire a portfolio of high
quality assets which, if acquired, would utilise the majority of the disposal proceeds. The income yield is
expected to be commensurate with the yield achieved on the disposal of the Leopard portfolio and will be
accretive to shareholder returns over the medium term. However, there can be no guarantee that such
acquisition will proceed to completion and a further announcement will be made by the Company, as
appropriate, in due course.
Mike Watters, CEO of Redefine International commented:
“In line with our strategy, we are consistently looking to realise value by recycling capital at attractive prices.
We are very pleased to announce this opportunistic disposal which capitalises on an exceptionally strong
German investment market, resulting in a 10.8% premium achieved on book value and a 12.0% premium to
the price paid for the acquisition of a controlling interest in April 2017. Following the deal, our overall
exposure to Germany will decline from 27% to 18% and we anticipate reinvesting the proceeds into the UK,
where we are witnessing some particularly attractive investment opportunities. However, we remain
committed owners of and investors in properties that demonstrate strong fundamentals, which coupled with
an experienced team of local asset managers, ensures Germany remains a strategic market for us.”
For further information:
Redefine International P.L.C.
Mike Watters, Stephen Oakenfull, Janine Ackermann Tel: +44 (0) 20 7811 0100
FTI Consulting
UK Public Relations Adviser
Dido Laurimore, Claire Turvey, Ellie Sweeney Tel: +44 (0) 20 3727 1000
Instinctif Partners
SA Public Relations Adviser
Frederic Cornet, Lizelle du Toit Tel: +27 (0) 11 447 3030
Java Capital
JSE Sponsor Tel: +27 (0) 11 722 3050
Note to editors:
About Redefine International
Redefine International is a FTSE 250 UK Real Estate Investment Trust (UK-REIT) committed to becoming
the UK’s leading income focused REIT. With targeted growth in underlying earnings per share of 3-5% across
the medium term, the Company's income-led business model and strategic priorities are designed to offer
shareholders continued superior, sustainable and growing income returns.
A truly diversified portfolio and tenant base underpin income sustainability, with no overreliance on any one
sector or tenant, together with an efficient capital structure. The secure and growing income stream is 39%
indexed, has a WAULT of 7.4 years to first break (8.5 years to expiry) complemented by an average debt
maturity of 7.3 years of which over 93% of interest costs are either fixed or capped. The Company is focused
on all aspects impacting shareholder distributions and boasts one of the lowest cost ratios in the industry whilst
maintaining a low cost of debt.
The Company owns properties independently valued at £1.5bn in the United Kingdom and Germany, Europe’s
two largest and most transparent property markets. Redefine International are buyers and owners of strong
property fundamentals spread across UK shopping centres (20%), UK retail parks (13%), UK offices (13%),
UK logistics (11%), UK hotels (16%) and German retail (27%). All figures as at 31 August 2017.
Redefine International holds a primary listing on the London Stock Exchange and a secondary listing on the
Johannesburg Stock Exchange and is included within the FTSE 250, EPRA and GPR indices.
For more information on Redefine International, please refer to the Company’s website
www.redefineinternational.com.
6 November 2017
Date: 06/11/2017 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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