SCA Property Group (ASX:SCP)
has announced it has entered into a conditional sale contract with Stride Property Group for its New Zealand property portfolio.
The portfolio will be acquired by Investore Property Limited, a newly established Stride-managed entity scheduled for IPO on or before 30 June 2016.
The two parties have agreed to a sale price for the portfolio’s 14 shopping centres of NZ$267.4 million, with the purchase to be completed in two tranches.
Proceeds from the sale will be redeployed into Australian retail opportunities and used to repay debt, decreasing the group’s gearing by approximately 25 percent.
SCA Property Group reported a net profit of $90.8 million at 31 December 2015.