Capital & Regional (C&R) has completed the sale of its 50% stake in the Waterside shopping centre in the English cathedral city of Lincoln to Tesco Pension Fund.
Capital & Regional (C&R) has completed the sale of its 50% stake in the Waterside shopping centre in the English cathedral city of Lincoln to Tesco Pension Fund.
The mall, which was held by C&R jointly with partner Karoo, was sold for a total of £46 mln (€58 mln), reflecting a net initial yield of 5.88%.
The disposal realises cash proceeds to C&R of £15.7 mln including performance fees. The disposal price represents a return to the group of 20% IRR.
Since purchasing Waterside in 2011 for £25 mln, C&R has sought to enhance the retail offer and invested £9 mln in modernising and redeveloping the centre.
A spokesperson for C& R said: 'The redevelopment programme has transformed Waterside’s fashion offering, introducing H&M and bringing Next and Body Shop back to Lincoln.'
C&R has a £1.2 bn portfolio, primarily in town centre shopping centres. The company plans to convert to REIT status from next year, in an effort to enhance both its ability to generate an attractive dividend yield and its appeal to a wider, more international shareholder base.