Axiom Properties Ltd. entered into a conditional agreement to sell its 50% stake in the Churchill North Shopping Centre in Adelaide, Australia, to Inheritance Capital Asset Management for A$42.5 million.
Under the deal's terms, Axiom granted Inheritance exclusive due diligence on the property until early 2018 to raise the funds for the proposed acquisition. Axiom also agreed to subscribe for between 15% and 25% of Inheritance's new units, which will bring it expected net equity proceeds ranging from A$13.1 million to about A$14.9 million.
The deal will also allow Axiom to undertake a performance kicker on the expansion of the shopping center, which has a pending application for a 6,500-square-meter retail project, which has the potential to add more than 40,000 square meters of leasable retail area to Churchill North.
From the A$42.5 million sale price of the retail asset, Axiom also expects to receive about A$17.5 million worth of senior debt.
