Adler Real Estate AG's 70%-owned unit, Brack Capital Properties NV, signed a binding agreement to sell three German retail properties, with a gross asset value of about €180.6 million, to an undisclosed London-based real estate private equity firm.
The properties in Rostock, Celle and Castrop-Rauxel, which comprise roughly 37% of Brack Capital's total retail portfolio, are being divested through a share deal that reflects an approximately 7.6% premium to the assets' book equity value.
Brack Capital will retain a 10.1% stake in the properties as part of the agreement, which is subject to customary closing conditions, according to a release.
Proceeds from the sale will be used to repay about €170 million of Adler's bank debt. The divestment supports Adler's strategy of focusing on being a pure-play German residential real estate company.
Kempen served as sole financial adviser on the sale.