A £186m deal to establish a joint venture between Bondholder intu Derby and Cale Street Partners, backed by the Kuwait Investment Office, has been completed.
The shopping centre giant announced in April that Cale Street Partners had agreed to snap up a 50 per cent interest in intu Derby, with intu managing the centre on behalf of the joint venture.
Intu chief executive Matthew Roberts said: "We are pleased to complete this innovative joint venture transaction in what is a challenging investment market in the UK."
John Forkin, Managing Director of Marketing Derby said: "Team Derby met with representatives from Cale Street Partners at MIPIM, the world's leading property event in Cannes, and they were very impressed with the public-private partnership here in Derby. In a subsequent meeting in London we were able to paint a broader vision with many of the developments planned in the area adjacent to intu Derby, including the residential schemes at Castleward and DRI site and mixed development schemes in St Peters Quarter."
The closing of the transaction was subject to completing a senior debt financing of the centre and certain other completion conditions. These conditions have now been met and the transaction has completed.
intu will continue to manage the centre, which spans 1.3 million sq ft and comprises more than 200 units, and receive asset management and brand licence fees for this, further enhancing intu’s return from the transaction.