ECE fund to buy intu Asturias
Shopping centre landlord intu and the Canada Pension Plan Investment Board have exchanged contracts to sell its Asturias shopping centre for €290m (£246m).
German firm ECE Real Estate Partners has agreed to buy the centre on behalf of its European Prime Shopping Centre Fund II. Intu’s share of the deal equalled €145m.
The landlord’s share of the centre, located in Oviedo, previously had a market value of £143m in June.
Shopping centre landlord intu and the Canada Pension Plan Investment Board have exchanged contracts to sell its Asturias shopping centre for €290m (£246m).
German firm ECE Real Estate Partners has agreed to buy the centre on behalf of its European Prime Shopping Centre Fund II. Intu’s share of the deal equalled €145m.
The landlord’s share of the centre, located in Oviedo, previously had a market value of £143m in June.
The sale will deliver net proceeds of around €85m after repaying asset-level debt, working capital adjustments and taxes. Intu said it will reduce its loan to value by around 1%. The transaction is expected to complete in the next week.
Matthew Roberts, chief executive of intu, said: “Our number one priority is fixing the balance sheet which includes creating liquidity through disposals. This transaction, which along with the disposal of intu Puerto Venecia, the part-disposal of intu Derby and other sundry asset sales, brings our total disposals since the start of 2019 to nearly £600m.”
Volker Kraft, managing director of the ECE Real Estate Partners fund management company, said: “With the acquisition of intu Asturias, we have complemented our ECE Fund II portfolio by adding one of the strongest shopping centres in Spain with more than nine million visitors per year.
“Although it is currently virtually fully let, we have identified a number of exciting value-add opportunities, which we want to realize in accordance with our investment strategy.”
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