Branicks - comment

The latest sale will provide about €7m in liquidity to Branicks and €20m to VIB. Branicks needs to keep on executing on sales and every little helps. The release does not specify if the sale price aligned with the book value, but we expect it to be close. The yield for prime retail parks is 4.75%, but we estimate the yield on this deal is more like 8.5%, indicating that these are in weaker sites.

The transaction covers four retail parks (three from VIB and one from Branicks). The gross rental is given at €4.3m, and we assume bank debt at a 40% LTV. At 8.5% yield => GAV €51m, less bank debt of €30m. Assuming Branicks/VIB hold 89.9% of the equity => €27.3m in NAV (in line with the release). 

https://www.eqs-news.com/news/corporate/branicks-group-ag-sale-of-four-retail-parks/2113229