28th Jan 2020 08:17
(Alliance News) - intu Properties PLC said Tuesday a joint venture between it and the Canada Pension Plan Investment board, have agreed to sell the intu Asturias shopping centre in Oviedo, Spain for EUR290.0 million.
The property will be sold to ECE European Prime Shopping Centre Fund II, and intu is set to receive a share a EUR145.0 million from the sale. The sale is expected to be completed next week.
The sale is part of intu's strategy of fixing its balance sheet, it said, and will deliver net proceeds of EUR85 million that will go towards repaying asset-level debt, working capital adjustments and taxes.
"We are pleased to have successfully agreed our second disposal in Spain in the last month. Our number one priority is fixing the balance sheet which includes creating liquidity through disposals. This transaction, which along with the disposal of intu Puerto Venecia, the part-disposal of intu Derby and other sundry asset sales brings our total disposals since the start of 2019 to nearly GBP600 million," said Chief Executive Matthew Roberts.
On Monday last week, intu confirmed that it was in discussions with shareholders and potential new investors, as it considers an equity raise at the end of February.
The Sunday Times reported then that Intu was looking to raise around GBP1 billion in cash through an equity raise.
Shares in intu Properties were up 0.7% at 18.91 pence on Tuesday in London, while its Johannesburg shares were up 0.3% at ZAR3.50.
By Dayo Laniyan; [email protected]
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