Redefine to acquire three malls in Germany

REDEFINE International, the London-listed subsidiary of JSElisted Redefine Properties International, said last Friday that its acquisition of three German malls was expected to be completed this Friday. The company also said it had raised £16.8m through a share placement.

Earlier this month, Redefine International announced the acquisition of three prime retail properties in Germany for a combined ¤189m.

The acquisition included the 19,000m² Schloss Shopping Centre in Berlin, the 15,000m² Bahnhof Altona Shopping Centre in Hamburg and the 10,000m² City Arkaden Shopping Mall in Ingolstadt.

The company said yesterday that the sellers of the Ingolstadt and Hamburg centres had chosen to receive Redefine International’s payment of about ¤26.2m as a combination of ¤19.4m in cash — reflecting a discount of 8.5% to the equity value, and ¤5m by the issue of about 12.5-million new ordinary shares. The ordinary shares, at 8p each, represent about 1.3% of Redefine International’s current issued share capital.

The sellers were due to elect for either cash or shares regarding the centre in Berlin on or before Friday. The payment for the centre was due on December 6 and any cash portion could be funded using existing cash resources, the company said.

Redefine International said it expected to complete the transaction on Friday, subject to certain conditions. The company also announced it has raised £16.8m, before expenses, through a placing of 40-million new ordinary shares — representing about 4.1% of its current issued share capital of the company.

Redefine Properties International said it was acquiring 20million of the shares being placed by Redefine International.