13th Nov 2014 11:32
LONDON (Alliance News) - Capital & Regional PLC on Thursday said it has struck a deal to sell the Waterside Shopping Centre in Lincoln as it reported a rise in shopping centre valuations and occupancy in the third quarter.
The company said it will sell the Waterside shopping centre to Tesco Pension Fund for GBP46 million, at a net initial yield of 5.9%.
The group also said it had seen a 2.5% rise in shopping centre valuations to the end of September, boosted by a 0.5% rise in valued income in the third quarter.
Year-on-year occupancy levels for the third quarter rose to 94.7% in the period, with footfall rising 1.8%.
The company said it is on track for its conversion into a real estate investment trust in December and will publish a circular outlining the details of the change in coming weeks.
"This is a truly transformational time for Capital & Regional and our immediate focus now is on completing the restructure of The Mall and achieving conversion to REIT status next month, while continuing to enhance our portfolio by progressing the asset management initiatives that we have identified," the company said.
The Mall Fund is a specialist UK community shopping centre brand, owning six properties with a total lettable space of 3 million square feet and about 700 retail units.
By Sam Unsted; [email protected]; @SamUAtAlliance
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