SCA Property Group (SCP) has entered into a conditional sale contract with Stride Property Group for the sale of SCPs New Zealand portfolio to a newly established Stride-managed entity, Investore Property.

The agreed sale price for SCPs 14 New Zealand centres is NZ$267.4 million (A$256m), representing a cap rate of 6.6% and a premium of 6.5% to the 31 December 2015 book value of the assets.

Proceeds from the sale will initially be used to repay debt, decreasing SCPs gearing to 25% (after settlement of both tranches).