RDI has exchanged contracts for the disposal of its UK retail parks portfolio of six assets for €175m (£156.9m) to M7 Real Estate Limited, on behalf of M7 Box+ II. The disposal is anticipated to complete in mid-October 2020. The purchase price reflects a 3% discount to the last reported 29 February 2020 values and a topped-up net initial yield of 7.5%. The Portfolio comprises the following assets:
- Banbury Cross Retail Park, Banbury;
- St David’s Retail Park, Bangor;
- Milton Road Retail Park, Edinburgh;
- Queens Drive Retail Park, Kilmarnock;
- Priory Retail Park, Merton, London; and
- The Arches, Watford, London.
Mike Watters, CEO at RDI, commented: “Together with the disposal of Schloss Strassen Center in Berlin just last week, we have taken a substantial step forward in the implementation of our portfolio strategy in a very short space of time and against a challenging backdrop. In just 18 months since announcing our strategic review, we have undertaken around €368m (£330m) of disposals and our teams working on these transactions deserve to be commended for markedly reducing our exposure to the retail sector. This major transaction also further reinforces our balance sheet by bringing our leverage down significantly whilst extending our cash position. Having now achieved a number of our strategic priorities, the Company is in a strong position.”