Closed-end real-estate investment company WDP signed yesterday a binding agreement (subject to a number of customary conditions, of which financing) for the sale of 100% of its shares in its Czech subsidiary WDP CZ. This transaction fits into WDP's strategy to strengthen its position in its core markets in Western Europe, with the logistics growth market in Romania as a supplementary component.
The transaction comprises a total value of the Czech property portfolio of approximately 25 million, which is in line with the latest fair value determined for these sites.
In order to maximize the transaction value and to be able to generate a gradual reinvestment in the company's core markets, part of the purchase price of maximum 6 million will be settled by means of a deferred payment, which is intended to be spread, at a yearly interest rate of 10%, over a period of maximum three years starting on the closing of the transaction, which is planned for the end of 2012, but at the latest on April 1, 2013.
The buyer is CTP Group, market leader in the logistics property market in Czech Republic.
WDP will immediately deploy the funds resulting from the sale of WDP CZ in a strategically located project in Zwijndrecht (in the port of Antwerp). This was already announced in the context of the Q3 2012 results.
Source: Citigate
