Capital & Regional, the UK co-investing property asset manager, has said it expects the sale of half of the equity investment in a EUR 637 mln German retail portfolio to Apollo Real Estate Advisers will be completed in the first week of October.
Capital & Regional, the UK co-investing property asset manager, has said it expects the sale of half of the equity investment in a EUR 637 mln German retail portfolio to Apollo Real Estate Advisers will be completed in the first week of October.
Last Friday Capital & Regional's shareholders approved a proposal to establish the retail joint venture with Apollo. Under the agreement Apollo will pay EUR 65 mln for the stake and the two 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.
