Landlord Stenprop, which is selling off assets in mainland Europe as it fully commits to UK multi-let industrial (MLI) assets, has reached agreement to sell a retail park in Berlin for €27m (R512m).
The sale of Neucölln Carrée retail park in Berlin, Germany to Hamburg-based real estate investment manager Union Investment is at a €3.6m premium to the park’s book value as of the end of March, the group said.
The company is seeking to become a specialist UK-focused group that provides work spaces for small and medium businesses, or MLI estates.
On completion of the disposal, assuming no further purchases of MLI estates, the percentage of the portfolio of such assets will rise to 60%, from 58% at the end of March.
“The sale of this asset at an attractive premium to valuation is a great result for the business and enables us to continue to deliver our strategy and focus on becoming the leading multi-let industrial business in the UK,” said CEO Paul Arenson.
“We continue to make good progress with the sale of our other German retail assets and expect to be in a position to report on further progress soon,” he said.
Stenprop’s share price was unchanged at R25.66 in morning trade on Thursday, having risen 5.6% so far in 2020, compared to a 37% fall in the JSE’s property index.
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