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A 50 PER cent stake in Adelaide's Churchill North Shopping Centre has been sold for $42 million by Axiom Properties Limited (ASX: AXI).
The stake was sold by the ASX listed property manager to Adelaide-based Inheritance Capital Asset Management.
The sale price of $42.5 million will result in Axiom receiving approximately $17.5 million net of senior debt and all transaction costs.
The end result of the transaction once settlement occurs is Axiom will receive net equity proceeds of between approximately $13.125 million and $14.875 million, boosting the group's cash balance to approximately $25 million.
The sale remains conditional on the completion of due diligence and execution of satisfactory sales agreement.
The terms of the agreement also allow Axiom to be entitled to a performance kicker on the balance of the development land, which is currently the subject of a development application for an additional 6,500 sqm of large format retail.
Once fully developed, the site will incorporate in excess of 40,000 sqm of retail tenancies including Costco, Coles, Kmart, Aldi, McDonalds, Priceline, Westpac and Commonwealth Banks, and Australia Post.
Managing Director of Axiom, Ben Laurance, says the decision to sell the majority stake in the property came at the right moment in time.
"This development has been an incredible opportunity for the group," says Laurance.
"To deliver over 40,000 sqm of such quality retail with an amazing calibre of national and international tenants in the last few years has been truly outstanding. This whole development has been a testament to the Axiom team."
Shares in the property developer are up 10.2 per cent to $0.054 at 12.30pm AEDT.
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