Picture: BLOOMBERG/CHRIS RATCLIFFE
Picture: BLOOMBERG/CHRIS RATCLIFFE

London and JSE-listed landlord RDI, which is selling off its assets in Germany to focus on the UK, said on Thursday it had sold three warehouses in Germany for €34.2m (about R650m), having now moved to dispose of more than half that portfolio.

Landlords in Europe are grappling with the rise of e-commerce, and now the effects of the coronavirus pandemic.

The sale of the three warehouses represents a 3.5% discount to their market values as of August 2019; however, given the transaction structure, the purchaser has taken on the inherent tax liabilities associated with the portfolio, the group said.

About €164.9m of the group's German assets have been sold or exchanged for sale representing about 55% of the total German retail portfolio.

“These latest disposals are in line with RDI’s stated strategy to further reduce its exposure to retail and focus the portfolio on core assets in the UK market while strengthening the balance sheet,” said CEO Mike Watters.

“We are pleased with progress made to date in addition to our active sales pipeline, although remain cognisant of the unprecedented macroeconomic backdrop that has emerged,” Watters said.

In morning trade on Thursday, RDI's share price was unchanged at R11.72, having more than halved so far in 2020. Over the same period, the JSE's property index has fallen a similar amount.

gernetzkyk@businesslive.co.za