Redefine sells its German assets

REDEFINE International yesterday announced it had completed the sale of four German office assets for €106 million (R1.5 billion).

The properties, in Berlin, Dresden, Cologne and Stuttgart and totalling 45 145m2, are let to a German government-backed social insurance body on a combined weighted average unexpired lease term of just under seven years.

The assets, which were disposed of via a share sale, had been held in a joint venture with Menora Mivtachim Group, one of Israel’s largest insurance and pension funds, since 2012.

The portfolio generated a total annual gross rental income of €8.1m, €4m attributable to Redefine International.

Mike Watters, chief executive of Redefine International, said: “We are pleased with the transaction, having achieved an impressive 27% internal rate of return over the investment period.

“The proceeds from this successful and timely sale, which were enhanced by the current strength of the euro, will be reinvested into value accretive assets and used to effectively reduce debt. This is in line with our stated aim and our commitment to focus on delivering superior income-led total returns.”

The firm is an income-focused FTSE 250 UK Real Estate Investment Trust with a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. – ANA