UK REIT Redefine International, together with Israel's Menora Mivtachim Group, have completed the disposal of four German office assets for 鈧�106 mln via a share sale.
Redefine said that its 49% share of the joint venture with Menora, which generated net proceeds of 鈧�24.9 mln, reflected an 8.6% premium to the book value.
'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% IRR over the investment period,' said Mike Watters (pictured), CEO of Redefine International. 'The proceeds from this successful and timely sale, which were enhanced by the current strength of the Euro, will be reinvested into value accretive assets and used to effectively reduce debt. This is in line with our stated aim and commitment to focus on delivering superior income-led total returns.'
The properties, situated in Berlin, Dresden, Cologne and Stuttgart, total 45,145 m2 and are let to a German government-backed social insurance body, VBG, on a combined weighted average unexpired lease term (WAULT) of just under seven years. The portfolio generated a total annual gross rental income of 鈧�8.1 mln of which 鈧�4 mln was attributable to Redefine.
In 2012, Redefine entered into a joint venture agreement with Menora, one of Israel鈥檚 largest insurance and pension funds, in order to undertake certain co-investments in properties located in Germany.
