Unibail-Rodamco-Westfield (URW) today announces the sale of a 25% stake in Centrum Cerny Most in Prague, Czech Republic, to Upvest and RSJ Investments.
Centrum Cerny Most is one of the strongest and best-performing destinations in Prague. The 85,000m2 shopping centre is currently being extended by 9,000m2, with new retail, dining and leisure facilities to be delivered in 2026.
The transaction will establish a long-term joint venture, with the Partners having the option to acquire an additional stake of up to 24% within the next two years based on the appraisal value at that time, taking into account the benefit of the ongoing extension. URW will continue to manage the asset, which will remain fully consolidated by the Group, and will generate asset and property management fees.
The transaction is achieved at an implied offer price of €553m (at 100%), in line with the last unaffected book value.
As part of the transaction, the asset has been financed with a green mortgage loan of up to €268m, the largest syndicated commercial real estate loan in the Czech market since 2023, that will be partly used to finance the ongoing shopping mall extension.
The net debt reduction for URW amounts to c. €0.1b. With this transaction, URW has now completed or secured €1.6b of transactions since January 2024, which will reduce the Group’s proportionate net debt by the same amount. The Group remains in active discussions on further disposals as part of its deleveraging plan.
Image source - Pexels.
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