$42m Churchill Sale Complete

LISTED developer Axiom Properties has completed the $42.5 million sale of its 50% interest in the Churchill North retail precinct to Adelaide fund manager Inheritance Capital Asset Management (ICAM).

Following an exclusive due diligence period, contracts have been executed with settlement due this month. As part of the deal, Axiom, will retain a 35 per cent stake in the purchasing trust and will remain development manager for any future stages of the project over the next five years. ICAM will take on $25 million of Axiom’s senior debt as part of the deal, while Axiom will subscribe for 7 million units in the purchasing trust at $1 a unit.

Settlement of the transaction will take place following State Government consent to the assignment of the ground leases. Axiom said this was expected to occur by April 12. The 18ha Churchill North retail centre is underpinned by Costco, Aldi and Coles supermarkets, and has an occupancy rate of 99.2 per cent. Southern Cross Equity Group, headed by Adelaide property investor Peter Tunno, owns the other 50 per cent share of the centre.