Intu Properties PLC and cale street investments LP announces creation of 50/50 joint venture for Intu derby

Posted On Thursday, 18 April 2019 12:04 Published by
Rate this item
(0 votes)

Intu properties plc (‘intu’) and Cale Street Investments LP (‘Cale Street’), an investment firm.

MATTHEW-ROBERTS--

backed by the Kuwait Investment Office, London, are pleased to announce the establishment of a 50/50 joint venture for the intu Derby shopping centre. 

Cale Street will acquire for cash the 50 per cent interest for consideration which values their share of the property at £186.3 million, before taking account of senior debt finance and customary working capital adjustments. This structured equity transaction includes a prioritisation waterfall for distributions to the joint venture partners. 

The consideration for the 50 per cent interest is in line with the valuation at 31 December 2018 of £372.5 million (100 per cent), which represents a net initial yield of 6.6 per cent. The net rental income of the property was £25.2 million for the year ended 31 December 2018.

intu Derby is located in the centre of Derby and is a key retail and leisure destination in the East Midlands, with an annual footfall of 22 million. The 1.3 million sq ft centre was extended and redeveloped in 2007 and provides over 200 units and includes key retailers such as M&S, Debenhams, Next, H&M, Sainsbury’s, Zara, Hollywood Bowl and Showcase Cinema de Lux.

intu will continue to manage the centre on behalf of the joint venture. The closing of the transaction will be subject to completing senior debt finance, the discussions for which are well advanced, and certain other completion conditions.

The transaction further advances intu’s stated strategy of reducing its debt to assets ratio through disposals, part-disposals and introducing partners to assets. Following the joint venture financing process, intu will use the net proceeds of the transaction to repay debt. 

Matthew Roberts, Chief Executive Designate, commented: 

“We are pleased to announce our new partnership with Cale Street and look forward to working with them at intu Derby. 

In what is a challenging investment market, this innovative transaction, which is in line with the December 2018 valuation, shows 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.” 

Last modified on Thursday, 18 April 2019 13:40
" "

Most Popular

Equites Property Fund to list on A2X

Jun 25, 2019
ANDREA TARVENA
Equites Property Fund Limited has been approved for a secondary listing on A2X Markets…

McCormick Property Development Celebrates the Opening of Katale Square

Jun 29, 2019
 JASON MCCORMICK
McCormick Property Development celebrated the launch of its 66th development with the…

New standard bank deal will make it easier for self-employed professionals to qualify for the mortgage bonds

Jul 03, 2019
 STANDARD BANK
Ever since the tightening of credit rulings in the South African economy which followed…

Hyprop reduces exposure to Africa and provides pre-close update

Jun 29, 2019
MORNE WILKEN
JSE specialist shopping centre REIT, Hyprop, today announced progress on its strategy…

Twin City to develop new R230m mall in Vryburg, North West

Jul 10, 2019
 TWIN CITY
The North West agricultural town of Vryburg is set to get its first enclosed shopping…

Please publish modules in offcanvas position.