Intu sells 50% stake in Derby shopping centre to Cale Street
Source - SMW
Intu properties agreed to sell a 50% stake in its Derby shopping centre to investment firm Cale Street investments for £186.3m as part of a 50/50 joint venture joint venture agreement.
Under the terms of agreement, Cale Street would acquire for cash the 50% stake, which values their share of the property at £186.3m, before taking account of senior debt finance and customary working capital adjustments.
This structured equity transaction included a prioritisation waterfall for distributions to the joint venture partners, the company said.
The consideration for the 50% stake was in line with the valuation at 31 December 2018 of £372.5m, representing a net initial yield of 6.6%.
'Intu is delivering on its strategy of reducing loan to value through disposals and part-disposals. On a pro-forma basis, we expect the impact of this transaction to reduce our loan to value by around one per cent,' the company said. At 8:00am: (LON:INTU) Intu Properties share price was +0.63p at 98.63p