Stenprop, a UK REIT company listed on the LSE and the JSE, has agreed to sell its freehold interest in the Victoria Retail Centre in Berlin, Germany to Art-Invest Real Estate Funds GmbH for €37.45 million, reflects a 19.3% (€6.05 million) premium to the 31 March 2020 book value.
Stentorp said the disposal of this retail centre is in line with its strategy to become a 100% UK MLI (multi-let industrial) business via the sale of all non-core properties in its portfolio and the reinvestment of the proceeds into UK MLI properties.
”Since 30 September 2020, Stenprop has acquired five MLI estates totalling £25.8 million which have taken the percentage of MLI in the portfolio to 64% (based on September 2020 book values and purchase prices for the recently acquired assets). Following completion of the sale of the Victoria Centre, this percentage will rise to 68%,” said in the statement.
Net proceeds from the sale after deduction of anticipated transaction costs, repayment of debt and property taxes is expected to be €24.1 million. Stenprop intends to use the net proceeds from the disposal to fund further acquisitions in UK multi-let industrial property.
Providing 13,718 sqm of gross lettable space, the Victoria Centre is let to eight tenants and anchored by supermarket chain Kaufland. The weighted average rental is currently circa €10.60 per sqm.
The retail centre in Berlin, the two adjacent buildings, is located in central Berlin in close proximity to the Ostkreoz train station. One is a shopping mall, including large carpark and the other is a Health Club.
“Our second Berlin retail centre disposal, achieved at a 19.3% premium to our March valuation, underlines both the strength of these assets and their appeal to the German domestic investor market as well as our ability to successfully execute on our stated asset management initiatives. The sale will allow us to continue our MLI acquisition programme in the UK, which has accelerated since the summer with the addition of 790,000 sq ft of new MLI space added to the portfolio,” said James Wakelin, Head of debt and special projects at Stenprop.