London-listed Capital & Regional has completed the disposal of two shopping centres held by the Mall Fund which it manages.
London-listed Capital & Regional has completed the disposal of two shopping centres held by the Mall Fund which it manages.
The Gracechurch Centre, Sutton Coldfield, and The Pavilions, Uxbridge, were sold for a combined consideration of £152.5 mln (€176 mln).
The Gracechurch Centre, Sutton Coldfield was sold to M&G Real Estate for £88 mln, representing an initial yield of 7.75%. The Pavilions, Uxbridge was acquired by clients of LaSalle Investment Management for £64.5 mln, representing an initial yield of 7.7%.
Following the disposals the Mall Fund’s debt will be reduced to £383 mln and the proforma LTV to 57%.
Capital & Regional said that the sales mark the successful completion of the strategy to dispose of non-core shopping centres to reduce the debt in the Mall Fund to a level that could be refinanced on more attractive terms.
At end-June 2013, the Mall Fund's portfolio, including The Gracechurch Centre and The Pavilions, was valued at £829 mln, reflecting a yield of just over 7%. The fund now holds six shopping centres that provide a total of more than 280,000 m2.
