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.”
One of the best ways to find properties below market price is to look at recent administrations.
This is an exciting opportunity to acquire a well-established brand owner and distributor specialising in pet treats, food, and toys across the UK and Ireland.
This established distributor of homeware brands offers a unique opportunity to enter the UK, European, and US markets with a focus on wellness and educated-health products.
LEASEHOLD
This is a rare opportunity to acquire a well-established specialist in late model classic vehicles, renowned for excellent service, repairs, and restoration of a specific vehicle type.
LEASEHOLD
09
|
Jul
|
Engineering group divests subsidiaries in strategic move | BUSINESS SALE
The Calder Group, a pan-European engineering group headquart...
08
|
Jul
|
Professional services consultancy acquires risk advisory specialist | BUSINESS SALE
A specialist risk advisory firm based in the West Midlands h...
08
|
Jul
|
Administrators appointed at leading maternity wear brand | ADMINISTRATION
A £30m+-turnover maternity fashion retailer worn by cu...
09
|
Apr
|
Cardiff Rugby tackles move into administration | ADMINISTRATION
Cardiff Rugby have served formal notification that they inte...
27
|
Mar
|
Acquisitive IT firm makes latest deal after securing fresh funding | BUSINESS SALE
Everything Tech Group, an acquisitive Manchester-based manag...
17
|
Nov
|
Warehouse and distribution firm acquired by European group | BUSINESS SALE
J R Harding & Sons, a temperature-controlled warehouse and d...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.