Alpha Real Trust Limited Partial Sale & Refinancing H2O Shopping Centre (6405F)
May 19 2017 - 3:00AM
UK Regulatory
TIDMARTL
RNS Number : 6405F
Alpha Real Trust Limited
19 May 2017
19 May 2017
ALPHA REAL TRUST LIMITED ("ALPHA REAL TRUST")
Partial sale and refinancing of the H2O shopping centre
Alpha Real Trust today announces that it has agreed to sell a
70% equity interest in the H2O shopping centre in Madrid ("H2O") to
CBRE European Co-Investment Fund, managed by CBRE Global Investors.
The sale is at a 4.8% premium to the latest published valuation of
the shopping centre, as at 30 September 2016. The sale contract has
conditions attached that are expected to be met by the end of June,
following which completion will occur, and a further update will be
provided at that time.
Alpha Real Trust originally purchased H2O in March 2010 at a
value of EUR83.3 million, including acquisition costs.
Since acquisition, annual footfall increased from 5.7 million to
7.7 million visitors and tenant sales have experienced strong
year-on-year growth. To attract a high number of new and repeat
visitors, Alpha Real Trust invested in physical upgrades, including
the creation of a new lakeside restaurant and leisure plaza, and
innovative marketing events such as launching the first Lego Fun
Factory children's play area in Spain. Alpha Real Trust
significantly enhanced the centre's commercial mix through an
active leasing strategy that included adding new retail and leisure
anchors, including Mercadona supermarkets and Nike, and promoting a
programme of store refurbishments and expansions, the latest
example of which being an enlarged H&M.
Alpha Real Trust will retain a 30% stake in joint venture with
CBRE Global Investors to participate in the future growth of the
centre. Alpha Real Capital, the investment manager of Alpha Real
Trust, will continue to manage the shopping centre. H2O shopping
centre is located in Rivas Vaciamadrid, which is 17km southeast of
Madrid CBD and is one of the city's fastest growing districts.
Opened in 2007, the property is a 52,000 square metre shopping
centre comprising 130 units across two floors and is arranged
around a man-made lake and large landscaped gardens. The property
has a strong leisure and restaurant focus. Anchor tenants include
Nike, Mercadona, H&M, Mango and seven Inditex Group brands,
including Zara, Bershka and Massimo Dutti, along with leading
cinema operator Yelmo.
Alpha Real Trust has also completed the refinance of the
borrowings secured on the shopping centre with a new EUR65 million
seven year loan with Aareal Bank. This loan has been used to partly
repay the previous bank loan (EUR71.1 million) which had been
provided by a syndicate of banks and which was due to be repaid in
October 2017. The new margin of 1.80% (1.70% on swapped fixed rate
borrowings) represents a significant saving on the previous
financing which had incurred a weighted average margin of 2.50%.
Alpha Real Trust has funded the refinancing gap and fees and CBRE
European Co-Investment Fund will, as part of the completion of the
sale above, pay 70% of this cost. The borrowings are non-recourse
to Alpha Real Trust.
For further information please contact:
Alpha Real Trust Limited
David Jeffreys, Chairman, Alpha Real Trust +44 (0) 1481 231 100
Brad Bauman, Joint Fund Manager, Alpha Real Trust +44 (0) 20 7391 4700
Panmure Gordon, Broker to the Company
Richard Gray / Andrew Potts +44 (0) 20 7886 2500
Further information on the Company can be found on the Company's
website: www.alpharealtrustlimited.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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