Disposal

RNS Number : 0228J

Capital & Regional plc

24 June 2011

 

24  June 2011

CAPITAL & REGIONAL PLC:

MORFA SHOPPING PARK SWANSEA

Capital & Regional plc announces that the Junction Fund has exchanged unconditional contracts for the sale of Morfa Shopping Park Swansea to The Crown Estate for a price of £80.2m. Completion of the sale is anticipated to take place on 27 June 2011.

The sale price reflects a NIY of 5.80% and a premium to the 31 March 2011 valuation.

The Junction Fund has owned Morfa Shopping Park Swansea since 6 October 2006. During this period the scheme has become fully let, completed by the recent letting of 30,000 sq ft to DSG for a combined Currys and PC World store.

The Junction Fund has disposed of the property as part of its strategy to focus on those properties that have greater asset management or development opportunities.

The sale of Morfa Shopping Park Swansea is the fourth disposal by the Junction Fund since the start of 2010, and the second to The Crown Estate following Ocean Retail Park Portsmouth in March 2011.

Following completion of the sale of Morfa Shopping Park Swansea, Junction Fund bank debt will have been reduced by 54% since May 2009.

Capital & Regional has an interest of 13.4% in the Junction Fund.

For further information:

Capital & Regional:

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

Kenneth Ford, Executive Director                                          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

About The Junction Fund

The Junction is a specialist retail park fund, owning six retail parks, one development site and one non-core industrial property with a total floor space of approximately 2 million square feet. It specialises in mixed use retail parks embracing a variety of uses including food, DIY, homewares, electrical goods and general High Street retailers.

2009 saw a refinancing of the fund with a £63.6m equity raise supported by AREA Property Partners.

The Junction key statistics (at 31 March 2011)

Gross property asset value                     £434m 

Number of properties (core)                     6 

Number of units                                     109 

Initial yield                                             5.68% 

Equivalent yield                                      6.65% 

C&R share                                            13.4% 

For further information see: www.thejunction-uk.com 

 

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