Delta Lloyd Exits Commercial Property With Retail Portfolio Sale

Delta Lloyd NV, the Dutch insurer planning a rights offer to bolster capital, sold a portfolio of 15 shopping centers in the Netherlands, completing its exit from commercial property.

The properties were purchased by investors advised by Tristan Capital Partners, Amsterdam-based Delta Lloyd said in a statement on Wednesday. The transaction, valued at 273 million euros ($299 million), will have little impact on the company’s solvency ratio, it said.

The insurer’s shares have plummeted this year amid concerns that the company will struggle to generate cash and bolster capital to meet new capital requirements under so- called Solvency II regulations coming into force next year. The company, which suspended its final dividend and decided to change the model it uses to calculate risk under the new regulations, plans to raise as much as 1 billion euros in the rights offer.

“The actions we are taking, which, among other things, will improve our risk position, are progressing to our satisfaction,” Chief Executive Officer Hans van der Noordaa said in the statement. “We have disposed of around 500 million euros of commercial investment property and this will help to simplify our property portfolio and reduce the risks in our investment portfolio.”

Today’s transaction follows the sale in November of office assets for about 226 million euros, Delta Lloyd said.

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