Newmark renegotiates Underwood mall deal following fire
Newmark Capital has revised its agreement to buy Zone Underwood, part of which was destroyed by fire during due diligence.
The Melbourne fund manager will now pay Clarence Property Group $56 million – a $1m discount on the initially agreed value, in July.
Settlement has also been made structured; the bulk of the payment ($46m) will be made tomorrow with the balance expected next year following certain conditions.
The vendor is offering a rent guarantee too, covering the (Officeworks) tenancy which was burnt.
As well, Clarence is responsible for the rebuild, expected to come in at $5.9m ex-GST.
Built has been appointed to complete it.
Zone Underwood
On 2.815 hectares, Zone Underwood contains 11,152 square metres (story continues below).
Clarence acquired it for $31.25m in 2018.
Newmark had earmarked it for the one year old Property REIT (NPR); it will be the trust’s first non-Bunnings backed investment.
Supercheap Auto, Sydney Tools and Best Friends Pets are amongst the anchors.
The Weighted Average Lease Expiry is six years.
A fire, deemed by police to be suspicious, destroyed the Officeworks wing of the complex in August.
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