Intu Properties has sold its Spanish shopping centre for €475.3m (R7.4bn), it said on Monday.
Intu Puerto Venecia shopping centre, which was jointly owned by Intu Properties plc and Canada Pension Plan Investment Board, was sold to Generali Shopping Centre Fund and Union Investment Real Estate. Intu’s share of the sale is €237.7m.
The transaction is part of intu’s strategy of fixing its balance sheet and will deliver net proceeds to Intu of about €115m after repaying asset-level debt, working capital adjustments and taxation, the company said.
Intu will use the net proceeds to repay debt with the transaction reducing loan to value by about 1%.
Intu Puerto Venecia is in Zaragoza, Spain and is the regional retail and leisure destination for the Aragon region with an annual footfall of 19-million.
“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,” said Intu CEO Matthew Roberts.
He said the group’s top 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 £479m (R8.8bn).”
The transaction is subject to regulatory approvals, and is expected to be completed in early 2020.