Key Property Investments, a 50/50 joint venture between St Modwen and Salhia Real Estate, has completed the sale of the Elephant & Castle shopping centre to Delancey and Dutch pension fund APG for £80 mln (€96 mln) in cash.
Key Property Investments, a 50/50 joint venture between St Modwen and Salhia Real Estate, has completed the sale of the Elephant & Castle shopping centre to Delancey and Dutch pension fund APG for £80 mln (€96 mln) in cash.
The sale price reflects a yield of 4.25% and is 'significantly' above the asset’s current book value, the vendors said in a statement.
KPI acquired the Elephant & Castle shopping centre in May 2002 for £29 mln. The scheme currently provides 30,000 m2 of retail, leisure and office space in London.
The vendors said the proceeds will be used to reduce the debt held by the KPI joint venture against the shopping centre and other jointly owned assets.
Bill Oliver, CEO of St Modwen, said: 'For the last 11 years, we have significantly increased the value and potential of the Elephant & Castle shopping centre through strong asset management initiatives and we had also looked forward to redeveloping the centre to drive a wider scale regeneration of the area.'
