Disposal

RNS Number : 0088O

Capital & Regional plc

12 September 2011

 

12 September 2011

CAPITAL & REGIONAL PLC

THE ALHAMBRA CENTRE BARNSLEY

THE CLEVELAND CENTRE MIDDLESBROUGH

Capital & Regional plc announces that The Mall Fund has unconditionally exchanged contracts for the sale of The Alhambra Centre Barnsley and The Cleveland Centre Middlesbrough to F&C REIT for a price of £108.1 million reflecting a net initial yield of 8.6%. After deducting rental top ups the sale price is marginally below the 30 June 2011 valuation.

The proceeds of these disposals will be used to repay debt in line with the Mall Fund's strategy of degearing to focus on a core portfolio of dominant secondary shopping centres. Following completion of this transaction The Mall's outstanding debt will amount to around £665 million, a reduction since December 2009 of £580 million.

Following these disposals and based on the 30 June 2011 valuation the proforma net debt to property value would be 56% in The Mall Fund.

Capital & Regional has an interest of 16.7% in the Mall Fund.

Commenting on the sales Hugh Scott-Barrett said "In challenging markets it is particularly pleasing to achieve the sale of these assets at a good price. The sales take the Mall a significant step towards the December 2014 debt target of £600 million and the goal of recommencing distributions from the Fund."

Ends

For further information:

Capital & Regional:

Hugh Scott-Barrett, Chief Executive                                    Tel:  [phone]

Charles Staveley, Finance Director                                     Tel:  [phone]

Maitland:

Martin Leeburn                                                                     Tel:  [phone]

Richard Farnsworth                                                              Tel:  [phone]

Notes to editors:

About Capital & Regional plc

Capital & Regional is a specialist property company with a track record of developing asset management opportunities in town centre shopping centres and out of town retail parks.

Capital & Regional founded The Mall and The Junction funds in conjunction with Aviva Investors. Capital & Regional acts as Property and Asset Manager for the Mall and Junction funds and holds 16.7% and 13.4% respectively of these funds.

Capital & Regional & 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 an 11.9% stake in the X-Leisure fund, which is managed by X-Leisure Limited in which Capital & Regional holds a 50% interest.

Capital & Regional has a number of other joint ventures and wholly-owned properties.

For further information see www.capreg.com

 

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