COMMERCIAL PROPERTY INVESTMENT
Market positive over Intu’s sale of Norwich shopping centre
Malls across the UK are being valued downward after Brexit
Intu Properties will sell half of its Chapelfield mall in the East Anglian city of Norwich, north-east of London, for a net consideration of £148m to LaSalle Investment Management. The market has lauded the sale, with the share price of the owner of UK and Spanish shopping centres rising as much as 4.7% on Thursday before ending 0.57% up at R40.45. Intu serves as a rand hedge for South African investors as it pays dividends in pounds, which have been significant for owners of its stock as the currency lost about 1.7% against the dollar in the first 10 months of 2017. Despite this currency boost, Intu’s share price is down about 14% year to date. The sale of half of the interest in Chapelfield is part of Intu’s strategy of introducing investment partners to its assets and recycling capital into its UK development pipeline. Intu manages the assets but can use the capital to enhance its existing assets. "We will use the net proceeds of the transaction to repay debt on our revolving cre...
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