RDI REACHES AGREEMENT TO SELL WEST ORCHARDS IN COVENTRY FOR R98.8M

RDI, THE income-focused UK real estate investment trust, had reached an agreement to sell West Orchards, Coventry for £4.85 million (R98.8m), the company, which is also listed on the JSE, said yesterday. The sale was expected to have a nominal impact on net asset value of £1.9m. “The sale leaves just one remaining retail asset in the UK, St George’s shopping centre in Harrow, Greater London,” the company said. The company also continues to make further progress in Germany, where it recently completed the disposal of a small retail asset in Molln for €3.8 million (R6m). RDI said the disposals provided further progress towards achieving a full exit from the retail sector during 2021, while also contributing to the strengthening of the balance sheet. RDI chief executive Stephen Oakenfull said West Orchards, Coventry, had faced a number of significant challenges, including its exposure to Debenhams as well as the general impact from lockdown restrictions due to Covid-19. “As part of our ongoing strategy, our strict discipline in terms of capital allocation and decisive action around selling legacy assets continues to enhance the quality of the portfolio with a full exit from retail now in sight,” he said. RDI’s share price fell 0.47 percent to R17.02 on the JSE yesterday afternoon, at a level where it has been trading in a relatively flat range since last July. It closed at R17.00. |