Rodamco Europe N.V. has agreed to the divestment of 'Zeilgalerie' shopping center in Frankfurt, Germany to Signature Capital, an Irish based real estate company, for an amount of €42.5 million. This amount is well above latest book value. The divestment will take place at a net initial yield of 5.3%.
The 'Zeilgalerie' is situated on the Zeil, the prime pedestrian retail high street in the heart of Frankfurt and consists of 57 retail units with a total GLA of approximately 12,600 m². The transaction is expected to take effect as per the end of February 2007.
The sale is in line with Rodamco Europe's policy of divesting non-core investments. The 'Zeilgalerie' shopping center is considered non-core, due to its relatively small size and third party management.
Source: Rodamco Europe
