Unibail-Rodamco-Westfield sells 25% stake in Prague shopping centre
Full story: https://grafa.com/news/retail-unibail-rodamco-westfield-sells-25--stake-in-prague-shopping-centre-346428
Unibail-Rodamco-Westfield (ASX:URW) announced the sale of a 25% stake in Centrum Černý Most, a premier shopping centre in Prague, Czech Republic.
The stake has been sold to Upvest and RSJ Investments, marking the formation of a long-term joint venture.
The Prague-based shopping centre, one of the city's leading retail destinations, is currently undergoing a 9,000sqm extension project slated for completion in 2026.
The newly formed partnership provides Upvest and RSJ Investments with the opportunity to purchase an additional 24% stake in the next two years, contingent on the appraisal value post-extension.
Despite the sale, URW will retain management responsibilities for the asset, ensuring its continued consolidation within the group.
The transaction is valued at an implied offer price of €553 million ($919.4 million) at 100% ownership.
Part of the financing for this transaction includes a green mortgage loan of up to €268 million ($445.5 million) – the largest of its kind in the Czech market since 2023 – which will also support the ongoing mall expansion.
URW's net debt reduction will reach approximately €100 million ($166.2 million) through this transaction, aligning with its ongoing deleveraging strategy.
"As with all our transactions, this one underscores URW's commitment to sustainable growth and prudent financial management," the company said in a statement.
The transaction contributes to the €1.6 billion ($2.66 billion) in transactions URW has completed since January 2024, reinforcing its strategic focus on reducing net debt and initiating ongoing discussions for further asset disposals.
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