Macquarie offshoot sells off American properties

SYDNEY: Shopping-centre investor Macquarie CountryWide Trust has agreed to sell 80 per cent of its United States portfolio for US$1.3 billion ($2.01 billion) to reduce debt.

The Macquarie Group satellite says it will sell its 75 per cent interest in 86 US properties it owns with Regency Centres to a joint venture between the California Public Employees' Retirement System and an affiliate of First Washington Realty.

The trust said the sale price reflected a capitalisation rate of 9.1 per cent based on the trust's estimated net operating income for this year, valuing the portfolio at US$1.73 billion.

It is among several Macquarie entities struggling with debt.

The deal would eliminate A$1.38 billion ($1.71 billion) of debt scheduled to mature in coming years and would release about A$226 million in gross cash proceeds. Balance sheet gearing would be about 36 per cent.

Chief executive Steven Sewell said the transaction would negatively affect earnings due to deleveraging, but debt would be "substantially lessened".

- AAP