Update re The Mall fund raisi

RNS Number : 5794V

Capital & Regional plc

30 May 2008

 



CAPITAL & REGIONAL PLC:

The Mall - Proposed capital raising

Capital & Regional plc, the co-investing property asset manager, is today updating the market on further progress with fund raising by The Mall since the Interim Management Statement on 16 May.  

The Mall Unit Trust has sent a circular to existing investors proposing an open offer to raise £286m new equity for the Mall at a price of 101 pence per unit, a discount of 45% to the April unit price. There will be a meeting of unit holders to approve the open offer on 5 June with the last date for applications to participate being 19 June.  

Legally binding commitments for the entire issue have been received from Norwich Union Life and Pensions and CGNU Life Assurance on standard terms. This provides certainty that, if the issue is approved, the Fund will receive cash upon completion.  

The transaction, which is expected to complete by the end of June, will enable The Mall to repay its outstanding bank facility in full.  This will provide The Mall with a more resilient capital structure for the future. 

Capital & Regional remains committed to the Mall and its franchise.  In determining the extent of any participation in the equity raising, Capital & Regional will balance the value dilution from not subscribing against the benefit of improved financial flexibility. If it chooses not to participate in full, the new equity in the Mall will have a beneficial impact on Capital & Regional's financial resilience, but at a potential cost of up to 60 pence per share due to the effect of dilution. Capital & Regional will communicate its decision on participation within the timetable outlined above.

- ENDS -

For further information:

Capital & Regional:	Tel: [phone]
Hugh Scott-Barrett, Chief Executive
William Sunnucks, Group Finance Director
Maitland
Martin Leeburn / Emma Burdett	Tel: [phone]

Notes to editors:

About Capital & Regional plc

Capital & Regional is the co-investing asset manager which specialises in town centre shopping centres, out of town retail parks, and urban entertainment complexes.  

Capital & Regional founded the Mall and Junction Funds in conjunction with Morley Fund Management. It also founded the X-Leisure fund with Hermes Investment Management Limited, and has a number of other joint ventures and developments. Its shares are quoted on the London Stock Exchange.  

For further information see www.capreg.com 

About The Mall

The Mall is the leading owner and operator of community shopping centres in the UK. Morley Fund Management and Capital & Regional set up The Mall Fund in 2002.

For further information, visit www.themall.co.uk

 

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