Redefine International completes sale of German office assets

Redefine International, a leading FTSE 250 income-focused UK Real Estate Investment Trust (REIT), recently announced the completion of the sale of four German office assets for a gross consideration of €106 million. The assets were sold via a share sale and were part of a joint venture with the Menora Mivtachim Group. Stephen Oakenfull, Deputy CEO of Redefine International, joined CNBC Africa to discuss the decision to sell these assets and the outlook for the company's future. Stephen Oakenfull explained that the sale was in line with the company's strategy to enhance the quality of its portfolio. The assets were initially acquired at an attractive price during a distressed market period, and Redefine International achieved a remarkable 27% internal rate of return over the investment period. With the current highly competitive investment market in Germany, the company saw an opportunity to realize significant value from the assets and reinvest the capital into new opportunities. Oakenfull highlighted the fruitful partnership with the Menora Mivtachim Group, noting that they have been joint venture partners for several years. The relationship has been mutually beneficial, with Redefine International leveraging the Israeli company's strong capital base while sharing its local expertise in Germany. The Deputy CEO confirmed that the company is constantly exploring new opportunities, particularly in the UK and Germany, aiming to enhance the overall portfolio quality. When asked about the increased uncertainty in global markets due to factors like the fluctuating dollar and Brexit, Oakenfull emphasized the importance of focusing on controllable aspects. He mentioned that the company remains optimistic about its operational performance, citing strong occupational demand in the UK and successful lease signings post-Brexit. Additionally, Redefine International's 20% exposure in Germany provides a hedge against recent sterling weakness. In conclusion, Redefine International's strategic divestment of German office assets signifies a proactive approach to portfolio management and capital reinvestment. The company's strong partnership with the Menora Mivtachim Group, coupled with its targeted market focus, positions it well to navigate market uncertainties and capitalize on emerging opportunities in the real estate sector.