Redefine International is taking over a portfolio of three shopping centres in Germany.
Redefine International is taking over a portfolio of three shopping centres in Germany.
The real estate company listed in London and Johannesburg has agreed to acquire the assets from funds managed by Irish real estate investment manager CMC Capital.
The €189 mln transaction reflects a blended net initial yield of 5.5%. Redefine said the deal is expected to produce an initial yield on equity in excess of 12% with strong rental growth potential as well as opportunities to add income and value through asset management opportunities.
The transaction is expected to complete by 30 August. This will lift Redefine International’s portfolio of European assets to £360 mln, or 30% of the company’s total portfolio by value.
The properties are Schloss-Strassen Shopping Centre in Berlin; Bahnhof Altona Shopping Centre in Hamburg and City Arkaden Shopping Mall in Ingolstadt.
Redefine International will assume existing bank debt facilities totalling €141.4 mln provided by HSH Nordbank and Hypothekenbank which are fully drawn. The existing bank loans have a weighted average maturity of 4.9 years and a weighted average interest cost of 3.12% per annum. The gross rental income of the three properties is €11 mln per annum with a weighted average lease length of 5.4 years.
