(Alliance News) - NewRiver REIT PLC announced on Wednesday it had sold Templars Square Shopping Centre in Oxford, England for GBP38.8 million in cash.
The London-based real estate investment trust said the sale to Redevco BV reflects a 4.9% premium to the asset's latest valuation. NewRiver originally bought the property for GBP24.6 million in 2012.
Last month, the property received planning permission for mixed-use regeneration, including 226 new homes.
The disposal is conditional on Oxford City Council's freeholder approval to assign the head lease.
Of the purchase price, GBP5.5 million will be held in escrow as a rental and service charge guarantee and to cover the purchaser's costs of agreeing a new head lease. NewRiver said it expects to recover a significant proportion of these funds.
NewRiver said the disposal is expected to complete in the first quarter of 2022.
Proceeds will be used to reduce the company's net debt. NewRiver added that, on completion, the Oxford disposal will improve its September 30 loan-to-value of 38% by a further 300 basis points.
Shares in NewRiver were up 0.1% at 85.96 pence on Wednesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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NewRiver (NRR)