| Thu 2 Dec 2010, 12:30 | | RIN - Redefine Properties International Limited - Acquisition of ITB FMZ |
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RIN
RIN
RIN - Redefine Properties International Limited - Acquisition of ITB FMZ
Herzogenrath B.V. and ITB Baumarkt Schwandorf B.V.
Redefine Properties International Limited
(formerly Kalpafon Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2010/009284/06)
JSE share code: RIN ISIN Code: ZAE000149282
("RIN")
ACQUISITION OF ITB FMZ HERZOGENRATH B.V. AND ITB BAUMARKT SCHWANDORF B.V.
Set out below is an announcement which was released by Redefine International
plc, the AIM-listed subsidiary of RIN, on the Regulatory News Service ("RNS") of
the London Stock Exchange today.
"Redefine International plc
("the Company" or "Redefine International")
ACQUISITION OF ITB FMZ HERZOGENRATH B.V. AND ITB BAUMARKT SCHWANDORF B.V.
INTRODUCTION
The Board of Directors is pleased to announce that the Company has through its
66.66% held subsidiary ITB FMZ Reinheim B.V. ("ITB Reinheim"), acquired an
effective 50% holding in ITB FMZ Herzogenrath B.V. ("ITB Herzogenrath") and an
effective 50% holding in ITB Baumarkt Schwandorf B.V.("ITB Schwandorf") ("the
Acquisition").
ITB Herzogenrath was acquired from Albert Ten Brinke Beheer B.V. and Bertram
Beheer B.V. (companies incorporated and registered in the Netherlands) and ITB
Schwandorf was acquired from Albert Ten Brinke Beheer B.V.
ITB Herzongenrath and ITB Schwandorf hold two newly developed retail properties
("the Properties"). A senior debt facility of EUR16.7 million has been advanced
against the Properties by Bayern LB. The senior debt facility has a term of 7
years and bears interest at a rate of 1.3% above Euribor. An interest rate fix
is currently being negotiated.
RATIONALE FOR THE ACQUISITION
The Acquisition demonstrates Redefine International`s ability to take advantage
of opportunities available as a result of the global economic crisis, by buying
quality assets at reduced prices and in a low interest rate environment. The
Acquisition is also in line with Redefine International`s objective of
increasing its European portfolio, and in particular expanding its presence in
the German retail market.
SALIENT TERMS OF THE ACQUISITION
The Company acquired the shares in ITB Herzongenrath and ITB Schwandorf with
effect from 30 November 2010 ("Effective Date").
The purchase price ("the Estimated Purchase Price") paid by ITB Reinheim for the
shares in ITB Herzongenrath and the shares in ITB Schwandorf is in aggregate
EUR3.7 million of which EUR2.45 million was funded by Redefine International.
The final purchase price ("the Final Purchase Price") will be determined
formulaically in terms of the acquisition agreements taking into account the
financial statements of ITB Herzongenrath and ITB Schwandorf as at the Effective
Date. In so far as there is a difference between the Final Purchase Price and
the Estimated Purchase Price, an adjustment amount will be paid between the
purchasers and the sellers plus interest at a rate of 6% per annum.
The acquisition agreements contain warranties typical for acquisitions of this
nature.
All conditions precedent to the Acquisition have been fulfilled.
THE PROPERTIES
The Properties are located in Herzogenrath and Schwandorf, Germany.
The Properties are leased to OBI on 15 year leases. OBI is Germany`s leading
DIY chain with over 530 stores throughout Europe and employing over 38,000
employees. In 2009 OBI achieved turnover of approximately EUR5.9 billion. There
are 3 other tenants, all national German chains, which account for approximately
10% of the total rental income of the Properties.
The Properties were constructed in 2009 and have a combined lease area of
approximately 20,000m2 with 640 parking bays. The weighted average monthly
rental per square meter is EUR7.00 in respect of the property in Herzogenrath
and EUR8.00 in respect of the property in Schwandorf.
The Properties were acquired at an initial yield of 8% with a leveraged return
net of acquisition costs of 12% per annum. This forecast has not been reviewed
or reported on by Redefine International`s auditors.
For further information please contact:
Redefine International plc +27(0)21 683 3829
Gavin Tipper - Chairman
Singer Capital Markets +44(0)203 205 7500
Jeff Keating
Powerscourt +44(0)207 250 1446
Matthew Fletcher / Karen Le
Cannu
Redefine International Fund +1 (284) 494 9820
Managers Ltd
Miles Walton"
2 December 2010
Sponsor to Redefine Properties International Limited
Java Capital
Date: 02/12/2010 12:30:01 Produced by the JSE SENS Department.
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