Capital & Regional sells two more malls
Published: 12 September, 2011
The Mall Fund has disposed of two more properties in Barnsley and Middlesbrough
Capital & Regional's Mall Fund has sold The Alhambra Centre Barnsley and The Cleveland Centre Middlesbrough to F&C REIT for £108.1m reflecting a net initial yield of 8.6 per cent After deducting rental top ups the sale price is marginally below the 30 June 2011 valuation.
The proceeds will be used to repay debt in line with the Mall Fund's strategy of degearing to focus on a core portfolio of dominant secondary shopping centres. Following completion of this transaction The Mall will have† £665m of outstanding debt, down by £580m since December 2009.
Chief executive Hugh Scott-Barrett said: "In challenging markets it is particularly pleasing to achieve the sale of these assets at a good price. The sales take the Mall a significant step towards the December 2014 debt target of £600 million and the goal of recommencing distributions from the Fund."