intu properties has exchanged contracts to sell its 63.525 per cent stake in intu Bromley to Alaska Permanent Fund Corporation for £177.9 million, representing a premium to its 30 June 2016 valuation of £175.9 million. The topped-up net initial yield based on market value at 30 June 2016 was 5.7 per cent.
intu Bromley is located in London’s largest borough and has an annual footfall of 20 million. intu has re-positioned the asset having undertaken a successful mall refurbishment programme which improved the tenant mix of the centre and most recently with the fully let Queen’s Garden restaurant terrace.
As part of the transaction, APFC have also acquired Aviva’s 21.475 per cent interest in the centre. London Borough of Bromley is retaining its 15 per cent interest and freehold. The centre will be managed by LaSalle Investment Management on behalf of APFC. Completion is expected before the end of the year.
The transaction is in line with intu’s stated strategy of recycling capital into its £600 million UK development pipeline. intu will repay from the proceeds the current bank debt secured on the asset of £95.8 million.
David Fischel, Chief Executive, commented:
“We are pleased to have successfully concluded this transaction which enables us to recycle capital into our UK development programme focused on our super-regional assets and, at a consideration above our June 2016 market value, demonstrates the continuing investment demand for prime UK shopping centres.”