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Unibail-Rodamco-Westfield (ASX:URW) has sold an open-air shopping centre in Valencia to Castellana Properties – a Spanish subsidiary of Vukile Property Fund – for €305 million.
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The transaction is expected to wrap up in March 2025 and involves the Bonaire centre, which was closed until February due to flooding from October.
As a result, refurbishment has been completed on the common areas and retail units on the ground floor, with some tenants using this as an opportunity to upgrade their stores. The occupancy rate of Bonaire is currently 98%, with approximately 80% of stores either reopened or expected to be by the end of March.
Given the impact of the flooding, URW has now given Castellana an 18-month NOI guarantee – including a cap of €32.9 million to cover the stabilization period.
However, it is expected only a marginal part of this will actually be utilised to the fullest considering the strong occupancy levels in Bonaire right now.
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The sale ensures URW has completed or secured €900 million worth of transactions this year, helping to reduce its proportionate net debt.
URW shares have been trading at $6.36.
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