Infrared European Active Real Estate Fund has completed the acquisition of The Castle Mall Shopping Centre in Norwich from the Mall Fund. The investment volume of £77.3 mln (EUR 97.7 mln) reflects an initial yield of 7.8%.
Infrared European Active Real Estate Fund has completed the acquisition of The Castle Mall Shopping Centre in Norwich from the Mall Fund. The investment volume of £77.3 mln (EUR 97.7 mln) reflects an initial yield of 7.8%.
London-listed property company Capital & Regional, the co-investor-asset manager of the Mall Fund, said the price was in line with the valuation of the shopping centre in June 2012.
Infrared Capital Partners, formerly HSBC Specialist Investments Limited, is a London-based investor in global real estate.
Capital & Regional said that the Mall Fund will have £577 mln of debt following the disposal and related debt repayments. This will meet its 2014 amortisation target under its CMBS structure. The proforma loan-to-value will be 67% and net debt to value, reflecting the significant level of cash within the fund, would be less than 56% on a proforma basis.
The Mall Fund must meet two thresholds: its debt must be below £600 mln and the LTV must be below 60% to resume distributions to its shareholders.
