Post Close Statement

RNS Number : 9088V

Capital & Regional plc

20 July 2009

 

20 July 2009

CAPITAL & REGIONAL PLC:

POST CLOSE STATEMENT

Capital & Regional Plc, the co-investing property asset manager, presents a brief statement adding to the normal announcement of its fund valuations as at 30 June 2009, the end of the first half of its financial year.

Operating Environment

Conditions in the retail property market remain challenging. Occupancy levels however are broadly unchanged quarter on quarter with fewer tenants entering into administration in the Mall in the second quarter.  Collections as at the June quarter date were also ahead of the previous quarter.  Although the trend towards flexible lower rent leases for smaller units continues, demand remains good for well configured and positioned space. At Mall Wood Green, New Look has taken the former Woolworth store (35,000 square feet) on a 10-year lease whilst Primark has leased the adjoining 75,000 square feet unit on a 25-year lease.  Both leisure and our German portfolios continue to deliver a robust operating performance.

Banking Arrangements

Good progress is being made in the negotiation of the amended banking arrangements for both X-Leisure and the Group. Heads of Terms were signed on 26 June 2009 with X-Leisure's syndicate of banks which, once approved by respective credit committees, give the Fund the necessary additional financial flexibility, one of the conditions of the X-Leisure Open Offer. The transaction is expected to close around the end of July.

Progress has also been made in renegotiation of the Group's banking covenants. As part of the overall package that is under discussion, waivers have been agreed until 30 September 2009 in respect of both net asset value and gearing covenants to enable a longer term solution to be put in place.  Details of the amended facility are expected to be announced in conjunction with the Interim Results in mid-August.

Fund Valuations

Fund	Valuation of properties	Net Initial Yield	Unit value at	Unit value at	Underlying valuation change in period	Units owned by C&R	C&R percentage of fund
			30-Jun-09	31-Mar-09
Mall Fund	£1,354,665,339	8.25%	£0.2377	£0.3651	(9.3)%	157,742,057	16.7%
Junction Fund	£589,834,466	7.35%	£0.2368	£0.4020	(4.4)%	88,176,870	13.4%
X-Leisure Fund	£524,550,000	7.99%	£0.4030	£0.4643	(2.7)%	51,899,578	19.4%

Notes:  

(1)    The underlying valuation change shows the increase/(decrease) in the value of the portfolio in the period as a percentage of the value of the portfolio at the beginning of the period.

(2)    This reflects the percentage ownership by C&R of X-Leisure prior to the capital raise becoming effective. This is expected to happen around the end of July.

(3)    The Junction unit value reflects the impact of dilution from the capital raise.

(4)    The valuation for X-Leisure reflects the impact of the sale of O2.

- ENDS -

For further information:

Capital & Regional:

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

Charles Staveley, Group Finance Director                  Tel:  [phone]

Maitland

Martin Leeburn                                                             Tel: [phone]

Emma Burdett                                                              Tel:  [phone]

 

END

 

 

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