C&R further increases stake in The Mall to 99.13%

RNS Number : 7063T

Capital & Regional plc

08 October 2014

 



8 October 2014

Capital & Regional plc

Capital & Regional further increases stake in The Mall Fund to 99.13%

Capital & Regional plc ("the Company"), the specialist community shopping centre owner, today announces, in line with its strategy to acquire 100% of The Mall, that The Mall Fund has agreed to redeem 69.5 million units, held across seven minority unit holder accounts, representing 7.38% of the total number of the units currently in issue.  This will have the effect, once completed, of increasing the Company's holding in The Mall Fund from 91.82% to 99.13%.

The unit redemption will be at a price of 39p per unit, this represents a discount of 3.8% to the unit price reflecting the 30 September 2014 valuation announced today.  The total cost of the redemption will be £27.1 million.  To assist in funding The Mall Fund has agreed amendments to its five-year secured bank facility with Morgan Stanley to convert the £25 million capex facility into an additional loan of £30 million increasing the total term loan to £380 million.  The amendments agreed will increase the interest rate margin by 20 bps across the £380 million facility, meaning on draw down the cost of debt would be 3.46% based on current 3 month LIBOR.  At full drawn down the LTV of The Mall Fund will be 52.6% based on the 30 September 2014 valuation.

The redemption is conditional on the meeting of certain conditions precedent under the amended financing arrangements.  The Company do not anticipate any issues in satisfying these requirements. 

The remaining 0.87% not owned by the Company following the redemption will be held across two accounts.

Hugh Scott-Barrett, Chief Executive commented:

"The redemption of the units by the Mall Fund marks further progress in our aim of buying out all of the minority unit holders and will help to facilitate restructuring the Fund to drive cost efficiencies."

ENDS

For further information:

Capital & Regional:                                                         Tel:  [phone]
Hugh Scott-Barrett, Chief Executive
Charles Staveley, Group Finance Director
FTI Consulting:                                                                Tel: [phone]
Stephanie Highett Richard Sunderland Claire Turvey Aleka Bhutiani

 

Notes to editors:

 

About Capital & Regional plc

Capital & Regional is a specialist property company with a strong track record of delivering value enhancing retail and leisure asset management opportunities across a £1.2 billion portfolio, primarily in town centre shopping centres.

Capital & Regional is the principal investor and Property and Asset Manager for the Mall Fund.

Capital & Regional & Ares Management (formerly known as AREA Property Partners) each hold a 50% interest in a German retail property portfolio which is managed by Garigal Asset Management GmbH, in which Capital & Regional holds a 30% interest.

Capital & Regional also has a number of other joint ventures.

For further information see www.capreg.com.

 

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