Axiom Properties Ltd. executed the conditional agreement to sell its 50% stake in the Churchill Centre North shopping center in Adelaide, Australia, to Inheritance Capital Asset Management for A$42.5 million.
All relevant contracts pertaining to the sale have now been executed after the buyer said it had satisfied exclusive due diligence on the property.
Axiom stands to receive about A$17.5 million in net proceeds from the stake disposal, which includes the buyer taking on about A$25 million of Axiom's senior debt. Of the total net proceeds, the company will funnel A$7 million to acquire 7 million new Inheritance units at A$1 apiece, representing a cornerstone 35% stake in the company.
Axiom will remain as development manager of the shopping center over the next five-year period. The scheme has a pending application for a 6,500-square-meter retail project, expected to offer more than 40,000 square meters of additional leasable area at Churchill North, according to an earlier release.
The deal is scheduled to close after the Minister for Transport, which owns the land, approves the assignment of the ground leases, which Axiom expects to be no later than April 12.