Search Share Prices
RDI eyes lower leverage investments after completing German disposal
RDI REIT completed the sale of its German retail property portfolio for 205m, which it will use to further reduce leverage and recycle proceeds into income-enhancing investments it has identified.
The London- and Johannesburg-listed real estate investment trust, which closed the deal at a 10.8% premium to book value, said it continued to benefit from the income generated by the portfolio until completion on 29 December and intends to reinvest the disposal proceeds into new investments at lower leverage.
Chief executive Mike Watters said: "We remain firm in our commitment to ensuring that the RDI portfolio is in the very best shape to deliver reliable and superior income returns, underpinned by a strong balance sheet and capital structure.
"While Germany remains a strategically important market for us, this opportunistic disposal not only allows us to benefit from a highly attractive premium, but also to further reduce leverage and recycle proceeds into identified income enhancing investment opportunities."