30th Nov 2018 10:48
LONDON (Alliance News) - FTSE 250-listed shopping mall owner intu Properties PLC has agreed on the sale of three properties for a total of GBP25.3 million, as part of its current disposal and capital recycling programme.
One of the properties to be sold is a freehold investment in Brierley Hill in West Midlands, with a gross internal area of 75,186 square feet on a total site area of 5.0 acres, located near its Merry Hill shopping centre.
There is also intu's freehold and leasehold interests in York House, a 24,000 square feet site adjacent to intu Victoria Centre in Nottingham.
The third property to be sold is the former BHS store on St Peter's Street, Derby which consists of four levels comprising 53,000 square feet.
Proceeds from the disposals will be reinvested into intu's ongoing pipeline of development opportunities across its UK shopping centre portfolio.
On Thursday, intu was left reeling after a consortium of shareholders announced it would not be making a formal GBP2.85 billion offer amid ongoing market uncertainty. In October, a consortium comprising shareholders Peel Group and Olayan Group - which together hold a 30% stake in Intu - and Brookfield Property Group proposed a cash proposal of 215 pence per share.
Under the proposed offer, this would have been adjusted for any dividends declared prior to the deal close. With Intu having declared an interim dividend of 4.6p per share, the consideration under the revised proposal would be 210.4p per share.
On Thursday, the stock closed 41% lower in London, and 39% lower in Johannesburg.
In addition to the pull out, Intu said it intends to reduce its dividend payment, starting with its final payout for 2018.
Chief Executive David Fischel said on Friday: "These three deals, all successfully sold at above book value, are further evidence of our commitment to dispose of non-core assets and recycle capital into our exciting development programme. All three sites will continue to benefit from being in the vicinity of hugely popular intu shopping centres which welcome millions of shoppers every year."
Shares in intu Properties were down 0.4% at 114.08 in London, and down 2.7% at ZAR20.24 in Johannesburg on Friday.
Related Shares:
INTU.L