Unibail-Rodamco-Westfield (ASX:URW) Sells 25% Stake in Centrum Černý Most
Stake Sale Details
Unibail-Rodamco-Westfield (URW) announced the sale of a 25% stake in Centrum Černý Most located in Prague, Czech Republic. The sale is made to Upvest and RSJ Investments, forming a long-term joint venture aimed at further investment in the shopping centre.
Centrum Černý Most is recognised as a premier shopping destination in Prague, featuring 85,000 sqm of retail space. The centre is currently undergoing an expansion of 9,000 sqm, expected to enhance its retail, dining, and leisure offerings by 2026.
Financial Highlights
The transaction reflects an implied total offer price of €553 million, aligning with the last recorded book value. URW will maintain management of the asset, generating ongoing asset and property management fees. A green mortgage loan of up to €268 million, touted as the largest syndicated commercial real estate loan since 2023 in the Czech market, will partly finance the extension.
URW’s net debt reduction amounts to approximately €0.1 billion. This sale contributes to URW’s strategy, having now completed or secured an impressive €1.6 billion worth of transactions since January 2024, aimed at reducing the group’s proportionate net debt.
Future Outlook
URW remains actively engaged in discussions regarding further asset disposals as part of its deleveraging strategy.
This announcement has received the endorsement of URW’s Chief Executive Officer.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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