Intu Properties Plc - Disposal of intu Puerto Venecia
A jointly owned holding company and affiliates of intu properties plc ('intu') and Canada Pension Plan Investment Board have exchanged contracts to sell intu Puerto Venecia shopping centre to Generali Shopping Centre Fund S.C.S. SICAV-SIF and Union Investment Real Estate GMBH for €475.3 million (intu share €237.7 million).
intu Puerto Venecia is located in Zaragoza, Spain and is the regional retail and leisure destination for the Aragon region with an annual footfall of 19 million.
The transaction is part of intu's stated strategy of fixing its balance sheet and will deliver net proceeds to intu of around €115 million after repaying asset-level debt, working capital adjustments and taxation. intu will use the net proceeds to repay debt with the transaction reducing loan to value by around 1 per cent. The closing of the transaction is subject to certain completion conditions, including regulatory approvals, and is expected to complete in early 2020.
Matthew Roberts, chief executive of intu, commented:
"We are pleased to have successfully concluded this transaction and, as previously discussed, are at advanced stages of negotiations on the disposal of intu Asturias in Northern Spain.
As we announced at the interim results in July, our number one priority is fixing the balance sheet which includes creating liquidity through disposals. This transaction, which along with the part-disposal of intu Derby and other sundry asset sales in 2019 brings the year to date disposals total to £479 million."