Disposal
2 March 2011
CAPITAL & REGIONAL PLC:
OCEAN RETAIL PARK PORTSMOUTH
Capital & Regional plc announces that the Junction Fund has exchanged contracts for the sale of Ocean Retail Park Portsmouth to The Crown Estate for a price of £60.85m.
The sale price reflects a NIY of 5.81% and a premium to the 31 December 2010 valuation.
The Junction Fund has owned Ocean Retail Park Portsmouth since 30 September 2002. During this period the scheme has been comprehensively refurbished and asset managed, including the recent receipt of planning permission for two additional 1,500 sq ft units within the car park.
The Junction Fund decided to dispose of the property as part of its strategy to focus on those properties that have greater asset management or development opportunities.
The sale of Ocean Retail Park Portsmouth is the third disposal by the Junction Fund during the last 12 months, following Cambridge Close Retail Park Aylesbury in April 2010 and St Andrew's Quay Hull in September 2010.
The sale of Cambridge Close Retail Park Aylesbury and St Andrew's Quay Hull allowed the Junction Fund to make a capital distribution to investors of £42m in September 2010. This represents 33% of the NAV of the fund as at the time of the equity issue in May 2009.
The Junction Fund bank debt has been reduced by 35% since May 2009, and will be reduced further following completion of the sale of Ocean Retail Park Portsmouth.
Capital & Regional has an interest of 13.4% in the Junction Fund.
For further information:
Capital & Regional:
Hugh Scott-Barrett, Chief Executive Tel: 020 7932 8121
Kenneth Ford, Executive Director Tel: 020 7932 8050
Charles Staveley, Finance Director Tel: 020 7932 8000
Maitland
Martin Leeburn Tel: 020 7379 5151
Richard Farnsworth Tel: 020 7379 5151
Notes to editors:
About Capital & Regional plc
Capital & Regional is an entrepreneurial 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 seven 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 December 2010)
Gross property asset value £476m
Number of properties (core) 7
Number of units 118
Initial yield 5.77%
Equivalent yield 6.82%
C&R share 13.4%
Total debt £289m
For further information see: www.thejunction-uk.com
This information is provided by RNS