Post-Close Statement

RNS Number : 6756F

Capital & Regional plc

18 January 2010

 



18 January 2010

CAPITAL & REGIONAL PLC: 

POST-CLOSE STATEMENT

Capital & Regional plc, the co-investing property asset manager, today presents a brief corporate  update together with its fund valuations at its 2009 year end.

Reflecting the broader strength of investment markets, valuations of each of the UK funds have improved in the fourth quarter of 2009. Property level increases range from 1.3% for X-Leisure to 4.9% for Mall and 10.6% for The Junction (see table below). The unit values have increased  13.1%,  28.1% and 30.5% respectively.

The Funds have been able to take advantage of these conditions to dispose of assets either where asset management prospects are more limited or where refinancing needs are being anticipated. The sales of Aberdeen and Slough by The Junction Fund for £81.74m and of Bexleyheath by the Mall completed before year end.  Two further assets have been placed under offer by The Mall Fund.  

Whilst the outlook for UK retailers remains challenging, conditions in tenant markets have continued to improve in the fourth quarter. Collection levels have improved, the number of tenants in administration has fallen and occupancy levels have remained stable.  Further details will be available with full-year results to be published on 18 March.

The German portfolio has maintained its strong defensive characteristics, with occupancy and collection rates remaining at the high levels of previous quarters with no insolvencies in the final quarter.  Terms have been agreed, in principle, on one of the two German portfolios to be refinanced in 2010 whilst negotiations are well progressed on the other.

The group has exchanged contracts for the sale of its wholly-owned Beeston Place properties for net sale proceeds of around £2.1m, with completion expected later this month.  

Following a review of its advisory relationships, the company has appointed JPMorgan Cazenove as sole financial adviser and joint broker with Numis Securities Limited.

The unit values of the Mall Limited Partnership, the Junction Limited Partnership and the X-Leisure Limited Partnership as at 31 December 2009 were as follows:

	Valuation of properties £'000	Underlying  valuation change in  quarter (1)	Net initial yield	Unit value at 31December  2009	Unit value at  30 September  2008	Units owned  by C&R	C&R  percentage of fund
Mall Fund	£1,316,950,000	4.9%	7.79%	£0.2947	£0.2301	157,742,057	16.7%
Junction Fund	£572,071,848	10.6%	6.43%	£0.3221	£0.2468	88,261,870	13.4%
X-Leisure Fund	£518,750,000	1.3%	7.91%	£0.2172	£0.1920	91,899,578	11.9%

Notes:

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

(2)    The unit prices in the table above exclude the impact of debt mark to market adjustments in the funds.

(3)    The external valuers for the Mall's December valuation were CBRE and Cushman & Wakefield.

                                                                              -ENDS -

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 Aviva Investors Global Services Ltd. 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 

For further information:

Capital & Regional

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

Maitland

Martin Leeburn / Emma Burdett                                                      Tel: [phone]

 

END

 

 

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