5th Jun 2014 11:51
LONDON (Alliance News) - Intu Properties PLC said Thursday that it had entered into a joint venture agreement with Malaysian pension fund Kumpula Wang Persaraan for its intu Uxbridge centre.
The fund has taken an 80% interest in the centre for GBP175 million, a 2% premium on its valuation of GBP213.9 million at December 31, 2013.
Intu will retain the remaining 20% interest and continue to manage the centre.
It said that the joint venture was in line with its strategy of recycling capital into its development pipeline. Net rental income for the site for 2013 was GBP11.7 million.
Intu will repay existing bank debt and terminate associated swaps amounting to GBP155 million in total, it said.
"We are delighted to have entered into this partnership, establishing a relationship with a significant overseas investor and demonstrating the investment demand for prime UK shopping centres under the management of a specialist operator such as Intu," said Chief Executive David Fischel in a statement.
Shares in Intu were trading down 0.4% at 316.7 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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