Stenprop To Sell Berlin Shopping Centre For €30.8 Mln – Quick Facts

Stenprop Ltd. (STP.L), a UK-based multi-let industrial property company, announced Tuesday that it has exchanged contracts on the sale of its freehold interest in the Hermann Quartier shopping centre in Berlin, Germany for 30.8 million euros.

The sale is to Munich-based firm ILG Capital GmbH, acting on behalf of the regulated special property fund ILG Einkaufen D managed by IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH.

The disposal price is in line with the 30 September book value^ and reflects a 19% premium to the 31 March 2020 valuation.

Completion of the disposal is expected to occur upon satisfaction of the last conditions precedent described below and by no later than six months from the date of exchange, following which the disposal price will be paid to the seller.

Net proceeds from the sale after deduction of anticipated transaction costs, repayment of debt and property taxes are expected to be 19 million euros. Stenprop intends to use the proceeds to fund further acquisitions in the MLI sector.

The disposal will conclude the sale of the Company’s food-led Berlin retail portfolio. The sale will conclude 95 million euros of non-core disposals in the financial year to date at an average of 18% above March valuation, providing further capital to recycle into multi-let industrial.

The deal further progresses Stenprop’s strategy to become a 100% UK MLI business by March 2022, with the Company’s MLI assets expected to rise from 64% to 72% of Stenprop’s total portfolio once the sale completes.

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