Fund valuation

RNS Number : 4846Q

Capital & Regional plc

15 October 2013

 



15 October 2013

Capital & Regional plc

Quarterly Mall Fund Valuation

Capital & Regional plc ('C&R') today announces that the Mall Fund property valuation and unit value as at 30 September 2013 were as follows: 

Fund	Valuation of    properties	Underlying valuation change in period 1	Change in unit value (geared) in period	Net initial yield	Unit value at 30 September  2013	Unit value at 30 June 2013	C&R percentage of fund 2
The Mall Fund	£675,950,000	(0.2)%	(2.9)%	6.87%	£0.3620	£0.3729	20.3%

¹   The underlying valuation change shows the like-for-like decrease in the value of the portfolio in the quarter as a percentage of the value of the portfolio at the beginning of the period.

²   At 30 September 2013 Capital & Regional owned 191,623,116 units in The Mall fund.

Underlying property valuations were broadly stable in the period, reflecting improving sentiment in the investment market. However, as mentioned in the half year results, an £8.3 million swap termination cost arose on the £168 million debt repayment following the sale of Sutton Coldfield and Uxbridge, and this was the main cause of the fall in unit value during the period. The reduction of debt a result of the repayment has significantly increased our options for refinancing, and also allows the Mall Fund to resume distributions.

Commenting on the valuation Hugh Scott-Barrett said:

"The Mall's property values were stable in the quarter, reflecting the general improvement in sentiment in property markets. Given the strength of our core portfolio of dominant community shopping centres we expect income to grow as a number of ongoing asset management initiatives are delivered. This, together with the more favourable market conditions, is likely to enhance property values."

A further update on current trading will be provided in our IMS which will be issued on 8 November 2013.

- ENDS -

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

 

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 £1.3 billion portfolio, primarily in town centre shopping centres.

Capital & Regional founded The Mall in conjunction with Aviva Investors. Capital & Regional acts as Property and Asset Manager for the Mall and holds 20.3% of this 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 has a number of other joint ventures and wholly-owned properties.

For further information see www.capreg.com

 

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