Stenprop sells German retail centre

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Stenprop sells German retail centre

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Published Date: 2020-12-22 | Source: Stephen Gunnion | Author: Stephen Gunnion

Stenprop sells German retail centre

The property group will use the proceeds to make further acquisitions in UK multi-let industrial property.

Stenprop has sold another retail property in Germany as it accelerates its strategy to focus on multi-let industrial (MLI) estates in the UK.

The UK and German property owner, which plans to switch its entire portfolio to MLIs by March 2022, exchanged contracts on the sale of its freehold interest in the Victoria Centre in Berlin to Art-Invest Real Estate Funds for €37.5 million (R674 million). The disposal price was at its book value at the end of September and reflected a 19.3% premium to book value at the end of March.

In July, it sold the Neucӧlln Carrée retail park, also in Berlin, for €27 million, 15.4% ahead of the year-end valuation.

Stenprop said the disposal was in line with its strategy to become a 100% UK MLI business via the sale of all non-core properties in its portfolio and the reinvestment of the proceeds into UK MLI properties. Since the end of September, it had acquired five MLI estates totalling £25.8 million, taking the percentage of MLI in the portfolio to 64%. Following completion of the sale of the Victoria Centre, this percentage would rise to 68%.

After the deduction of anticipated transaction costs, repayment of debt and property taxes it expected to be left with €24.1 million. It planned to use the net proceeds to fund further acquisitions in UK multi-let industrial property.

Stenprop's shares closed 0.2% down at R26.51 yesterday.





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