The Scotsman

Scot­tish retail parks in dis­posal

- BY SCOTT REID Business · Retail · Investing · Real Estate · Real Estate Investing · Industries · Scotland · London · Edinburgh · Queens · Kilmarnock · Kilmarnock F.C. · London Borough of Merton · Watford · Berlin · Banbury

Property trust RDI has sold six retail parks in­clud­ing two in Scot­land for al­most £157 mil­lion.

The Uk-fo­cused real es­tate in­vest­ment trust, which is listed on the Lon­don stock mar­ket, said it had ex­changed con­tracts for the dis­posal of the as­sets to M7 Real Es­tate.

It de­scribed the deal as a “sig­nif­i­cant mile­stone” in the on­go­ing repo­si­tion­ing of its port­fo­lio.

Among the as­sets be­ing sold for a to­tal of £156.9 mare Milton Road Retail Park in Ed­in­burgh and Queens Drive Retail Park in Kil­marnock. The other prop­er­ties are lo­cated in Ban­bury, Ban­gor and Mer­ton and Wat­ford in Lon­don.

The port­fo­lio forms part of RDI’S £275m fi­nanc­ing fa­cil­ity which in­cludes a £137.5m re­volv­ing credit fa­cil­ity.

The an­tic­i­pated dis­posal pro­ceeds of £156.9m will be used to re­duce the re­volv­ing credit fa­cil­ity by ap­prox­i­mately £100m, pro­vid­ing a “sig­nif­i­cant re­duc­tion in lever­age”, the firm added.

Mike Wat­ters, chief ex­ec­u­tive at RD I, said :“To­gether with the dis­posal of Schloss Strassen Cen­ter in Ber­lin just last week, we have taken a sub­stan­tial step for ward 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 £330 m of dis­posal s 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 po sition. Hav­ing now achieved a num­ber of our strate­gic pri­or­i­ties, the com­pany is in a strong po­si­tion.”

The firm said the dis­posal, which is a sale of the six as­so­ci­ated spe­cial pur­pose ve­hi­cles, is an­tic­i­pated to com­plete in mid-oc­to­ber.

Newspapers in English

Newspapers from UK