Capital & Regional, the UK co-investing property asset manager, has exchanged contracts with Apollo Real estate Advisors to establish a joint venture for its German retail portfolio. Apollo is to pay a cash consideration of EUR 65.6 mln to acquire half of Capital & Regional's equity investment in the portfolio. The parties will also buy out the equity interest Germany's Hahn Group's holds in the portfolio for EUR 12 mln. Existing bank debt and interest swaps will remain in place.
Capital & Regional, the UK co-investing property asset manager, has exchanged contracts with Apollo Real estate Advisors to establish a joint venture for its German retail portfolio. Apollo is to pay a cash consideration of EUR 65.6 mln to acquire half of Capital & Regional's equity investment in the portfolio. The parties will also buy out the equity interest Germany's Hahn Group's holds in the portfolio for EUR 12 mln. Existing bank debt and interest swaps will remain in place.
The portfolio, valued at EUR 637 mln at end-June this year, comprises 50 out-of-town income-producing retail assets predominantly in Western Europe. There is a total of 472,000 m2 of leasable space, plus 161,000 m2 of development land. Capital & Regional will manage both.
Capital & Regional said the proceeds of the transaction will be used to reduce gearing.
