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RDI REIT PLC - RDI sells Bahnhof Altona Center, Hamburg

Release Date: 18/09/2019 08:00
Code(s): RPL     PDF:  
Wrap Text
RDI sells Bahnhof Altona Center, Hamburg

(“RDI” or the “Company”)
(Incorporated in the Isle of Man)
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
LEI: 2138006NHZUMMRYQ1745


RDI is pleased to announce that it has exchanged contracts with Volksbank eG Braunschweig Wolfsburg to
sell its Bahnhof Center in Altona, Hamburg for €91.0 million (“the Disposal”).

The Disposal, which is in line with RDI’s strategic decision to exit its German retail portfolio, reflects a net
initial yield of 4.6% and a 9.6% premium to the 28 February 2019 market value. The Disposal is expected to
complete on 31 December 2019 and remains subject to certain conditions being satisfied.

Bahnhof Altona is a 15,000 sqm retail centre which is integrally linked to the Altona train station and
underground transport network. The centre fronts the entrance to the station platforms and comprises 22 stores
across three levels and a 496 space multi-storey car park. The centre produces net rental income of
approximately €4.5 million p.a. (£4.1 million p.a.) and is anchored by Media Markt with other key tenants
including Lidl, Apcoa, BHG and Rossmann.

The property is currently financed through a banking facility totalling €45.0 million at an all-in rate of 2.70%
which is anticipated to be repaid on completion. The net proceeds from the transaction, following the
repayment of this debt facility, estimated capital gains tax of approximately €5.8 million and certain
transaction costs, is anticipated to be approximately €39.0 million (£35.4 million).

In line with RDI’s strategic objectives, the net proceeds will be used to efficiently reduce leverage through a
reduction of the Group’s revolving credit facility, that will create enhanced headroom and liquidity. The
Disposal will also result in a further material reduction in RDI’s retail exposure to approximately 35% of the
portfolio after accounting for the derecognition of the Aviva shopping centre portfolio.

Further updates on RDI’s disposal programme in respect of the German portfolio will be provided with the
release of its full year results, scheduled to be published on 24 October 2019.

Mike Watters, CEO of RDI, commented:

“The sale of the Bahnhof Center in Hamburg is in line with our stated strategy to reduce RDI’s retail exposure
and focus the portfolio on the UK market. The sale price of €91.0 million reflects a 9.6% premium to the last
reported value for the centre and was achieved following a competitive bidding process which drew a number
of institutional investors. As previously indicated, the net proceeds from the sale of assets currently being
marketed will be deployed to reduce Group debt and strengthen the overall balance sheet at a favourable time
in terms of the Euro’s relative strength to Sterling.”

For further information, please contact:

Mike Watters, Stephen Oakenfull                                 Tel: +44 (0) 20 7811 0100

FTI Consulting
UK Public Relations Adviser                                     Tel: +44 (0) 20 3727 1000
Dido Laurimore, Claire Turvey, Ellie Sweeney

Instinctif Partners
SA Public Relations Adviser                                     Tel: +27 (0) 11 447 3030
Frederic Cornet

JSE Sponsor
Java Capital                                                    Tel: +27 (0) 11 722 3050

18 September 2019

Note to editors:

About RDI

RDI is an income focused UK-REIT with a diversified portfolio invested principally in the UK. The
investment approach is driven by an in depth understanding of occupational demand including the impact of
technology, transport and infrastructure investment. The portfolio has been repositioned in recent years to
increase its weighting to London and the South East and to provide greater exposure to our leading hotel and
serviced office operating platforms.

RDI is committed to delivering attractive income led total returns across the real estate cycle. The current
strategic objectives of a lower leverage capital structure and more focused allocation of capital are targeted at
delivering an industry leading and sustainable income return.

RDI is a UK Real Estate Investment Trust (UK-REIT) and holds a primary listing on the London Stock
Exchange and a secondary listing on the JSE. The Company is included within the EPRA, GPR, JSE All
Property and JSE Tradeable Property indices.

For more information on RDI, please refer to the Company's website

Date: 18/09/2019 08:00:00
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