Vastned, the listed European retail property company focusing on venues for premium shopping, announces the completion of the divestment of the Turkish portfolio and is launching a tender offer for Vastned ordinary shares for up to €50m in cash.
Vastned has completed the divestment of the Turkish portfolio and received the total proceeds on 11 April 2017. On 8 March 2017 Vastned and a group of local private investors have signed an agreement for the divestment of the Turkish entity of Vastned, Vastned Emlak, through the sale of the shares of the entity. Vastned decided to exit Turkey due to the uncertain geopolitical and economic situation, consumer spending has been declining for quite some time and many tourists - a major source of income for the Turkish economy - avoid the country. Additionally, the negative movement of the exchange rate of the Turkish lira versus the euro has increased the effective rental costs, putting rents under pressure in the coming years, which are paid in euros. The divestment of this portfolio will contribute to Vastned’s goal of generating stable results.
Due to the size of the divestment, Vastned will use up to €50m of the proceeds to commence a share buy-back by means of a Dutch auction, as this is most suitable given the size of the share buy-back and the liquidity in the stock.
