18th Sep 2006 07:01
Capital & Regional plc18 September 2006 18 September 2006 CAPITAL & REGIONAL PLC: THE MALL FUND REFINANCES THROUGH COMMERCIAL MORTGAGE BACKED SECURITIES IN £375M TAP ISSUE Capital & Regional plc, the co-investing property asset manager, today announcesthat The Mall Fund has decided to refinance some of its revolving bankfacilities by issuing commercial mortgage backed securities. In May 2005, the Mall issued £1.06bn AAA rated Mall Bonds*. On behalf of theMall Fund, Morley and C&R, advised by Credit Suisse, have recently been workingtogether to tap the capital markets for an additional £375m. A further 3properties will be included in the security package, further enhancing thestrength of the credit. The issue will be used to repay part of a revolvingcredit facility which remains in place to fund capital expenditure or furtheracquisitions. Commenting on the refinancing, Ken Ford, Chief Executive of the Mall, said: "The financing put in place in May 2005 is working exactly as it should. TheCMBS issue provides very low cost finance, while the revolving credit facilitiesaccommodate the business' need for operational flexibility." Julius Gottlieb, Finance Director of Property at Morley Fund Management said: "This is a significant financing deal for The Mall Fund and its investors. Byrefinancing the existing bank debt using commercial mortgage backed securitieswe have again been able to significantly reduce the cost of debt within the fundand thereby increase returns to investors. The high quality of assets withinthe Fund provides an AAA credit rating for the securitisation." The benefits for the Mall and its investors are expected to be: • Additional returns to Mall investors due to reduced interest costs; • Flexibility to allow the fund to exploit asset management opportunities; • Extra protection against future interest rate movements; • A Revolving Credit Facility which is still available to support the growth of The Mall business; The Mall Fund was established by clients of Morley and Capital & Regional in2002 and since then has grown to over £3 billion in size with 23 shoppingcentres in its portfolio. The MallBonds are listed on the Irish Stock Exchange. \* The AAA rating was awarded by S&P, Moody's and Fitch. - Ends - Notes to editors: About Capital & Regional plc Capital & Regional is the co-investing asset manager which specialises in towncentre shopping centres, out of town retail parks, and urban entertainmentcomplexes. Capital & Regional founded the Mall and Junction Funds in conjunction withMorley Fund Management. It also founded the X-Leisure fund with HermesInvestment Management Limited, and has a number of other joint ventures anddevelopments. Its shares are quoted on the London Stock Exchange. For further information visit: www.capreg.com About The Mall The Mall is the leading owner and operator of community shopping centres in theUK. The Mall has assets of £3.025 billion in 23 shopping centres and has plansto grow assets to 30 centres, establishing The Mall as the UK's communityshopping centre brand. The Mall Fund is a specialist property fund managed byCapital & Regional and Morley Fund Management. For further information, visit: www.themall.co.uk About Morley Fund Management Morley Fund Management Limited is the UK-based asset management business ofAviva plc. Firms within the Morley group of companies manage £157bn fromoffices around the world as at 30 June 2006. The property team manages inexcess of £23bn of UK and European property assets, making Morley the largestproperty fund manager in Europe. The property team consists of 70 investment professionals and manages a range offunds on behalf of institutional, pension and retail clients. Morley has been atthe forefront of innovation in property fund management and has launched elevenspecialist sector based funds with partners, including: Igloo Regeneration Fund,Quercus Healthcare Property, The Junction and The Mall. For further information, visit: www.morleyfm.com or www.morleyproperty.com - ENDS - For further information: Capital & Regional:William Sunnucks, Group Finance Director Tel. 020 7932 8101 Hudson SandlerMichael Sandler Tel: 020 7796 4133 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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