Peel to sell Trafford Centre for £1.6bn
Peel has confirmed it is in advanced discussions with Capital Shopping Centres Group over the sale of the Trafford Centre shopping complex in Manchester.
Capital Shopping Centres Group said that if a deal was completed it would involve an equity payment of £750m for the 1.9m sq ft shopping complex and CSC would also take on the responsibility for the centre's net debt of about £800m and other net liabilities equating to around £50m. The Trafford Centre is valued at £1.6bn.
There would also be an equity investment of £75m from Peel, in return for a 19.9% shareholding in the CSC business, or 24.9%, assuming conversion of convertible bonds.
On completion, John Whittaker, chairman of Peel, would also join the CSC board as a non-executive director and deputy chairman.
In a statement released on Wednesday morning, Peel added that the talks with CSC are part of its on-going strategy to broaden its investments in many diverse sectors through co-investment with complementary businesses and partnerships.
It added: "As part of this strategy, Peel aims to retain ongoing interests in its major assets, as illustrated by its successful partnerships with RREEF at Peel Ports, Vancouver Airport Services at Peel Airports, Covanta at Ince Park and most recently with SIS Live at Peel's Media City UK project.
"The Trafford Centre's success lies in its first rate management and excellent staff and Peel Group has assured the Trafford Centre team that it's very much business as usual."
