9th May 2014 11:46
LONDON (Alliance News) - Capital & Regional PLC Friday announced the disposal of a retail park in Germany for EUR47.9 million, with some of the proceeds to be used to repay debt.
In a statement, Capital & Regional said its German joint venture has unconditionally exchanged contracts for the sale of its Lübeck property to clients of Invesco Real Estate. Part of the proceeds will go towards paying down debt of EUR35.1 million in the German joint venture, with about GBP4.0 million anticipated to be remitted to Capital & Regional.
The specialist property company said the EUR47.9 million sum, which will be paid in cash, is in line with Lübeck's December 2013 valuation and represents a net initial yield of 6.5%.
"The successful sale of Lübeck represents further progress in delivering our strategy to realise value from our non-core assets and reinvest in our UK shopping centre business," Hugh Scott-Barrett, chief executive, said in a statement.
The Plaza Center, Lübeck, is a retail park anchored by the Coop Hypermarket.
Completion is expected to take place within the next 10 days.
In addition, Capital & Regional said the marketing of a further tranche of seven assets, valued at more than EUR100.0 million at the end of 2013, is also progressing well.
"The strong interest already shown in the further tranche of assets being marketed gives us confidence of maintaining positive momentum and growing our UK business in the second half of 2014," Scott-Barrett said.
Capital & Regional shares were Friday midday quoted at 44.78 pence, up 0.6%.
By Samuel Agini; [email protected]; @samuelagini
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