“The Slovakian divestment marks the near completion of our EUR400 million capital recycling programme and reflects our continued discipline in optimising the portfolio. By exiting smaller and less liquid Central European assets, we are sharpening SERT’s focus on core Western European markets with deeper liquidity and stronger tenant demand,” says Simon Garing, CEO of the manager.
He adds that the proceeds strengthen SERT’s balance sheet and brings gearing below 40%, providing flexibility to reinvest in higher-value add investments that can help drive further growth.
The REIT has divested EUR411 million across 22 non-strategic assets at an 11% premium to valuations, including one additional office non-core asset to be divested imminently, since 2022.
“As a result, SERT now has no debt maturing until 2030 and a weighted average debt expiry of almost 6 years, following the soon-to-be-completed documentation of a EUR70 million five-year loan extension. Together, these achievements provide a strong platform from which to grow,” Garing notes.
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After adjusting for the balance sheet items in each SPV and sharing 50% of the deferred tax liabilities, the consideration of EUR70.0 million from the divestment was fully received in cash on completion.
The net proceeds will be used partly for the immediate repayment of SERT’s revolving debt facility, with the balance earmarked for a modest acquisition pipeline, other working capital requirements, and any future security repurchase program.
Separately, the divestment of Cassiopea 1-2-3 in Agrate Brianza, Italy which was announced on Sept 18, has been completed for a consideration of EUR11.35 million with all sale proceeds received on Nov 4.
Units in SERT closed 1 EUR cent lower or 0.641% down at EUR1.55 on Nov 11.
