Crosstree Real Estate Partners is buying the Edmonton Green shopping centre in north London for £72.0m (€81.5m) from St. Modwen Properties.
London-listed St Modwen said it has agreed to sell its long leasehold interest in the 495,000sqft shopping centre to Edmonton Green Limited, an affiliate of Crosstree.
St Modwen said the £72.0m disposal price represents a small premium to the £70.2m book value of the asset as at November last year. The shopping centre is currently 96% let to more than 160 tenants.
In addition, St. Modwen has completed the sale of two smaller retail assets in Liverpool and Cannock in two separate transactions for £9.9m in total.
Rupert Wood, a property asset management director at St Modwen, said: “These disposals are in line with our strategic objective to refocus our portfolio towards assets with strong structural growth characteristics.”
Wood said since the start of this year the company has sold £177m of retail assets, on average less than 1% below book value, representing more than half of its overall retail portfolio.
“Combined with the disposal of £49m of small assets in the year to date, this means we have comfortably exceeded our increased target to sell £150-175m of retail and small assets for the full year.
“Whilst these disposals will reduce our rental income in the near term, recycling the proceeds into our much higher yielding industrial/logistics pipeline is expected to deliver a marked increase in income over time.”
