Capital & Regional plc has announced that The Mall Fund has completed the sale of The Castle Mall Shopping Centre in Norwich to Infrared European Active Real Estate Fund for a price of £77.3 million (approx. €98 million) representing an initial yield of 7.8%. This is in line with the June 2012 valuation.
Following this disposal and related debt repayment the fund's debt will be approximately £577 million which meets its 2014 amortization target under the CMBS. The proforma LTV will be 67% and net debt to value, reflecting the significant level of cash within the fund, would be less than 56% on a proforma basis.
To recommence distributions The Mall must meet two thresholds, being the debt must be below £600 million and the LTV must be below 60%.
Hugh Scott-Barrett commented: "The successful disposal of Norwich is an important milestone in deleveraging The Mall. The sale reinforces the position of The Mall as a business focused on dominant community schemes in and around Greater London."