RDI REIT has sold its Bahnhof Center to Volksbank eG Braunschweig Wolfsburg for €91m as part of the company’s plan to exit its German retail portfolio.

The London-listed firm said the disposal amount reflects a net initial yield of 4.6% and a 9.6% premium to the asset’s 28 February market value.

Bahnhof Altona is a 15,000sqm retail centre which is integrally linked to the Altona train station and underground transport network.

The property is currently financed through a banking facility totalling €45m.

RDI said it expects to use the net proceeds of €39m reduce leverage through a reduction of the group’s revolving credit facility, “that will create enhanced headroom and liquidity”.

Mike Watters, CEO of RDI, said: “The sale of the Bahnhof Center in Hamburg is in line with our stated strategy to reduce RDI’s retail exposure and focus the portfolio on the UK market.”

Watters said the sale price, which reflects a 9.6% premium to the last reported value, was achieved following a competitive bidding process which drew a number of institutional investors.

“As previously indicated, the net proceeds from the sale of assets currently being marketed will be deployed to reduce Group debt and strengthen the overall balance sheet at a favourable time in terms of the euro’s relative strength to sterling.”