UK-focused property REIT Capital & Regional has sold The Mall shopping centre in Camberley to Surrey Heath Borough Council for £86 mln (€96 mln).
Completion is expected to take place mid-November. The sales price represents a 5.9% yield.
'The disposal of The Mall Camberley, which originated from an unsolicited approach from Surrey Heath Borough Council, will put us in a strong position to recycle capital for growth,' commented Capital & Regional CEO Hugh Scott-Barrett. 'We will look to reduce leverage, invest in higher yielding asset management initiatives and take advantage of the increasing number of attractive new investment opportunities which we have identified.'
Capital & Regional said that £45.2 mln (€50 mln) of the sales proceeds would be used to repay debt secured on the property. The balance would be held for reinvestment in the company's shopping centre business, including its ongoing capex programme and acquisitions.
The Mall, Camberley contributed approximately £1.8 mln to the group’s profit for the six months to end-June 2016. The valuation at 30 June was £88.5 mln, representing a net initial yield of 6.15%.
