LONDON: Capital & Regional's Mall Fund has sold two regional British shopping centres to F&C REIT for 108 million pounds ($172 million), to pay off debt and focus on its strongest assets.
The deal for the Alhambra Centre in Barnsley and the Cleveland Centre in Middlesbrough, reflected an initial yield of 8.6 percent, the company said on Monday.
"Following completion of this transaction the Mall's outstanding debt will amount to around 665 million pounds, a reduction since December 2009 of 580 million," the company said.
Capital & Regional has an interest of 16.7 percent in the Mall Fund, which it runs with Aviva Investors.
It also runs The Junction retail park fund with Aviva, which has also made disposals to pay down debt. The pair appeared at odds over whether it would be wound up as planned in 2013 following separate interviews with Reuters last month.
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