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.
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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