A shopping center in Blackburn, home to Boots, Costa, JD and Next, among others, has been sold for £40million.
Capital & Regional, the UK’s convenience and community-focused shopping center REIT, has exchanged contracts for the sale of The Mall to the retail arm of the Adhan Group of companies.
The deal represents a premium to the December 2021 valuation of £38.2m.
The finalization of the sale, which is subject to the agreement of the local authorities in full ownership, should take place towards the end of June 2022.
The Mall, Blackburn contributed approximately £3.7 million to the group’s net rental income for the year to 30 December 2021.
Net cash proceeds of around £39m will be used to repay debt secured on the property under The Mall loan facility, with the sale also expected to reduce the group’s net loan to value (LTV) ratio around 600 basis points.
A combination of this divestiture, the anticipated Walthamstow residential receipt and discounted debt purchase on Hemel Hempstead would reduce the group’s net LTV ratio, on a pro forma basis, from 49%, in December 2021, to approximately 41% .
Lawrence Hutchings, Managing Director, said: “The sale of The Mall, Blackburn at a premium to its December 2021 valuation provides further evidence of stabilization in asset values as well as renewed investor confidence in the market. sector and allows us to make another significant reduction in the leverage of the group.
“With the debt restructuring and capital increase at the end of last year, the recent acquisition of Hemel Hempstead debt at a significant discount and the major lease commitments and loan modifications at Ilford, which we We announced last week that this transaction represents another important step in the restructuring of the group’s financial and operational situation.
“These continued improvements give Capital & Regional a solid platform from which to look to continue to execute our growth strategy and support our plans to resume dividend payments in the second half of the year.”
Hutchings added: “I would like to thank the Blackburn center team for their hard work and dedication to the Capital & Regional group.
“We have been a big part of this vibrant, diverse and important community for over 20 years, and we wish the community, our retailers and the local council continued success as the center enters its next phase under new ownership. local.”