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Hystead Limited completes sale of Delta City Mall Belgrade

Author Radomir Ralev
Hystead Limited completes sale of Delta City Mall Belgrade Author: Delta City Belgrade. Licence: All rights reserved.

BELGRADE (Serbia), December 1 (SeeNews) - UK-based Hystead Limited, majority-owned by South African real estate investment trust (REIT) Hyprop Investments, has completed the sale of Delta City Mall in Serbia's capital Belgrade, Hyprop said on Wednesday.

"The disposal has now been completed and the cash proceeds from the disposal received. The net proceeds of the disposal will be used to reduce debt," Hyprop said in a statement.

In September, Hyprop said Hystead concluded an agreement to dispose of its indirect shareholding in Serbia-based company Delta City 67, which owns Delta City Mall, to Balkans Real Estate BV, a wholly-owned subsidiary of Dutch-based Centurion Venture Capital, for 115 million euro ($130 million). The purchase price comprises senior bank debt of 71 million euro which is secured against the property, and equity debt of 44 million euro.

Hystead acquired Delta City Mall from Serbia's Delta Holding for 127.8 million euro in February 2016.

As at June 30, the weighted average monthly rental per square meter of the property was 29 euro and the gross lettable area was 29,767 sq m. The net operating income of Delta City 67 for the year ended 31 December 2020, is 8 million euro.

($ = 0.88454 euro)