RDI sells UK shopping centre

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RDI sells UK shopping centre

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Published Date: 2021-02-10 | Source: Stephen Gunnion | Author: Stephen Gunnion

RDI sells UK shopping centre

The real estate investment trusts plans to sell its last remaining retail assets by the end of the year.

RDI REIT has sold its West Orchards shopping centre in Coventry in the centre of England as it continues to reduce its exposure to the retail sector. It plans to exit retail property entirely by the end of the year.

The real estate investment trust, formerly called Redefine International, exchanged contracts for the sale of the centre for £4.85 million. It said the disposal would have a nominal impact on its net asset value (NAV) of approximately £1.9 million, reflecting the contribution to its EPRA (European Public Real Estate) NAV last August. The sale leaves just one remaining retail asset in the UK, St. George's shopping centre in Harrow outside London.

The value of retail property in the UK has fallen sharply due to Brexit and the impact of Covid-19 on the sector. UK media reported that the West Orchards centre was sold at an 87% discount to its value of £37 million in 2013.

RDI said it also continued to make further progress in Germany, where it recently completed on the disposal of a small retail asset in Molln for €3.8 million. It said the disposal provided further progress towards achieving a full exit from the retail sector during 2021, whilst also contributing to the further strengthening of its balance sheet.

RDI's shares declined by 0.6% to R17 yesterday.





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