intu Bromley sold
Published: 25 October, 2016
intu and Aviva sell Bromley mall to US investor
Intu Properties has exchanged contracts to sell its 63.525 per cent stake in intu Bromley to Alaska Permanent Fund Corporation for £177.9m, reflecting an initial yield of 5.7 per cent. The price shows a premium to the centre’s 30 June 2016 valuation at £175.9m.
As part of the transaction, APFC has also bought 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 principal retail destination in London’s largest borough, intu Bromley attracts an annual footfall of 20 million. intu has repositioned the centre following a successful refurbishment programme, improving the tenant mix and increasing the F&B offer with the fully let Queen’s Garden restaurant terrace.
The transaction is in line with intu’s stated strategy of recycling capital into its £600m million UK development pipeline. Coinciding with the sale, the company launched a £300m bond issue.
Chief executive David Fischel, 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.”