Council buys Camberley
Published: 31 October, 2016
Capital & Regional sells the Mall, Camberley to local authority
Capital & has sold the Mall shopping centre in Camberley to Surrey Heath Borough Council £86m, representing a net initial yield of 5.9 per cent. Completion of the sale is expected to take place by the middle of November 2016.
£45.2m of the proceeds from the sale will be used to repay debt secured on the property as part of The Mall loan facility. The balance will be held for re-investment in Capital & Regional’s shopping centre business, including the ongoing capex programme and acquisitions.
The Mall, was valued at 30 June 2016 at £88.5m, representing a net initial yield of 6.15 per cent.
Chief executive Hugh Scott-Barrett said: “The disposal of the Mall Camberley, which originated from an unsolicited approach from Surrey Heath Borough Council, will put us in a strong position to recycle capital for growth. We will look to reduce leverage, invest in higher yielding asset management initiatives and take advantage of the increasing number of attractive new investment opportunities which we have identified.”