ADLER Real Estate AG’s subsidiary Brack Capital Properties N.V. sells first part of its retail portfolio
– Brack Capital Properties N.V. sells c. EUR 180.6m of gross asset value representing c. 37% of the total retail portfolio
– The portfolio is being sold in a share deal reflecting a c.7.6% premium to the book equity value
– Debt of c. EUR 107m to be repaid resulting in ADLER’s LTV reduction of c.80 bps
Berlin, 25 March 2019 – Brack Capital Properties N.V. (BCP), a c.70% subsidiary of ADLER Real Estate AG, has entered into a binding sale and purchase agreement with an established London-based real estate private equity firm to dispose of 3 retail assets located in Rostock, Celle and Castrop-Rauxel. BCP will retain a minority stake of 10.1% as part of the share deal. Closing remains subject to customary closing conditions.
The disposal of these three retail assets is in line with ADLER’s strategy to remain a pure play German residential real estate company.
The proceeds will be used to repay c. EUR 107m of bank debt to further strengthen the balance sheet with LTV of ADLER being positively impacted by c.80 bps.
Kempen acted as sole financial advisor on the sale.
Tomas de Vargas Machuca, ADLER’s Co-CEO, commented: “The disposal of our non-core residential assets in December 2018 and this first disposal of BCP’s retail portfolio demonstrates the Company’s commitment to improve our LTV, streamline our portfolio and is also a testament to our execution capabilities.”
Maximilian Rienecker, ADLER’s Co-CEO added: “BCP intends to opportunistically dispose of the remaining parts of its retail portfolio, which have already received interest by institutional, private equity and private groups of investors.”
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