Capital & Regional has exchanged contracts with Karoo Investment Fund II to form a 50:50 joint venture on the Waterside Shopping Centre in Lincoln.
In February, C&R announced it had bought the shopping centre from clients of PRUPIM for £24.8m, at a 7.68% net initial yield, using debt funding from Deutsche PostBank of £13.64m.
Karoo has agreed to pay £6.4m for a 50% stake in the venture. C&R said it would use the funds to “facilitate future acquisitions and for general corporate purposes”.
The formation of the joint venture is conditional on the approval of C&R’s shareholders.
nathan.cross@estatesgazette.com
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