UK-based Capital & Regional said on Monday it has agreed to sell The Mall shopping centre in Camberley for £86.0m (R1.4bn) in cash.

The JSE-listed property company said £45.2m from the deal‚ which will close in November‚ would be used to repay debt secured on the property as part of The Mall loan facility.

The balance will be held for re-investment in the company’s shopping centre business‚ including the ongoing capital expenditure programme and acquisitions.

The Mall Camberley contributed approximately £1.8m to the group’s profit for the six months ended June 30.

“The disposal of The Mall Camberley‚ which originated from an unsolicited approach from Surrey Heath Borough Council‚ will put us in a strong position to recycle capital for growth‚” chief executive Hugh Scott-Barrett said.

source: BDpro