Redefine International sells German offices for €106m
Redefine International, a real estate investment trust, has sold four German offices for €106m.
The offices, which the company holds a 49% stake in, were sold by a share sale, which were held in a joint venture with Israeli insurance and pension fund, Menora Mivtachim Group.
The proceeds of the same, which will amount to €24.9m, including a €2.4m performance fee will be reinvested into value accretive opportunities and to reduce debt.
The properties in Berlin, Dresden, Cologne and Stuttgart are currently let to a German government-backed social insurance body, VBG, on a contract about seven years, and generate rental income of €8.1m per year, of which €4m was attributed to Redefine International.
Mike Watters, chief executive of Redefine International said: "In line with our strategy to continuously improve the quality of our portfolio, these four offices were identified for sale. We are very pleased with the transaction having achieved an impressive 27% internal rate of return over the investment period.”
He added that the proceeds from the sales was timely as it was enhanced by the current strength of the euro against the pound.
Shares in Redefine International were down 1.76% to 39.69p at 0826 GMT.