Mon, 07 Sep 2020 | COMMERCIAL PROPERTY
London-based property investment trust RDI has completed the sale of its portfolio of UK retail parks to M7 Real Estate Limited, on behalf of M7 Box+ II, in a £156.9 million deal.
The deal forms part of RDI strategy to strengthen its cast position and comes a week after its sale of Schloss Strassen Center in Berlin. These deals were described by RDI Chief Executive Mike Watters as “a substantial step forward” in the strategy’s implementation.
The six retail parks within the portfolio are Banbury Cross Retail Park; St David's Retail Park in Bangor; The Arches in Watford; Priory Retail Park in London; Milton Road Retail Park in Edinburgh and Queens Drive Retail Park in Kilmarnock.
The six sites generated £12.5 million in gross annualised rental income and had 98.4 per cent occupancy, as of February 29 2020.
Proceeds from the sale will be used to reduce a revolving credit facility by £100 million, while the remaining £56.9 million will be held as cash within the group. The sale will also see cash and facility headroom increase to around £240 million following the sale, while RDI's pro-forma loan-to-value ratio will stand at 30.2 per cent compared to a ratio of 41.8 per cent in February.
Mike Watters said: “Together with the disposal of Schloss Strassen Center in Berlin just last week, we have taken a substantial step forward in the implementation of our portfolio strategy in a very short space of time and against a challenging backdrop.”
“In just 18 months since announcing our strategic review, we have undertaken around £330m of disposals and our teams working on these transactions deserve to be commended for markedly reducing our exposure to the retail sector.”
“This major transaction also further reinforces our balance sheet by bringing our leverage down significantly whilst extending our cash position. Having now achieved a number of our strategic priorities, the company is in a strong position.”
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