Capital & Regional completes GBP152.5m disposal of mall properties
Capital & Regional’s (C&R) Mall Fund has completed the disposals of The Gracechurch Centre, Sutton Coldfield and The Pavilions, Uxbridge for a combined consideration of GBP152.5m.
The Gracechurch Centre, Sutton Coldfield was sold to M&G Real Estate for GBP88m representing an initial yield of 7.75 per cent.
The Pavilions, Uxbridge was acquired by clients of LaSalle Investment Management for GBP64.5m, representing an initial yield of 7.70 per cent.
Following the disposals the fund’s debt will be reduced to approximately GBP383m and the proforma LTV to 57 per cent.
These sales mark the successful completion of the strategy to dispose of non-core shopping centres to reduce the debt in the Mall to a level that can be refinanced on more attractive terms. The Mall’s six remaining assets, comprising over three million sq ft, are strong schemes offering attractive and affordable space, as reflected in their resilience in the latest valuation at 30 June 2013.