13th Oct 2006 07:01
Capital & Regional plc13 October 2006 13 October 2006 CAPITAL & REGIONAL PLC: THE JUNCTION PURCHASES MORFA SHOPPING PARK, SWANSEA FOR £105MILLION Capital & Regional plc, the co-investing property asset manager, today announcesthat it has completed the disposal of Morfa Shopping Park in Swansea to TheJunction, the leading retail park owner and operator, for £105million. Thisreflects a net initial yield of circa 4% and an equivalent yield of 4.7%. Capital & Regional developed Morfa Shopping Park which comprises 265,000 sq ftof mixed Open A1/Bulky Goods retail and is located adjacent to the new LibertyFootball and Rugby Stadium in Swansea. Tenants on the park include TK Maxx,Boots, Next, New Look, ASDA George, Sports World, Argos, Peacocks, BrantanoFootwear, B&Q, Frankie & Benny's, Brewers Fayre, Pizza Hut and KFC. Claire Clark, the Fund Manager for The Junction Fund at Morley Fund Managementcommented: "A shopping park of this quality is highly sought after and is therefore asignificant acquisition for The Junction. It enables us to increase ourexposure to the high rental growth offered by Open A1 units and coupled with ourrecent secondary retail park sales we have successfully been able to rebalanceour portfolio. The Junction Fund now represents approx 8% of the UK Retail Warehouse market (asmeasured by IPD), and our investors have not only benefited from total returnsof over 27% pa since inception, but have also seen the strong diversificationbenefits of investing in an active management fund of such scale." Wilkinson Williams acted as independent property advisers for The Junction. 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 see www.capreg.com About The Junction The Junction owns and operates a £1.4 billion destination retail park portfolio.Capital & Regional and Morley Fund Management set up The Junction in 2002. Last month The Junction reported the disposal of four of its retail parks for£160million at a 5.9% equivalent yield. Several major refurbishments andredevelopments are currently ongoing across The Junction's prime retail parkportfolio, including major initiatives at Wembley, Thurrock and Oldbury. The Junction retail park disposals:- • Allied Irish Bank Private Banking represented by Cheval purchased the 211,652 sq ft Euro Retail Park in Ipswich for £66.34million, reflecting a net initial yield of 4.44% and an equivalent yield of 5.38%. • Glanmore Property Fund purchased Beckton Retail Park for £49.7million, reflecting a net initial yield of 5.09% and an equivalent yield of 5.84%. • Tulip Retail Park in Leeds was purchased by the BBC Pension Fund for £16million, reflecting a net initial yield of 4.19% and an equivalent yield of 7.32%. • Propinvest Holdings Ltd purchased Renfrew Retail Park, Renfrew for £27.75million reflecting a net initial yield of 6.27% and an equivalent yield of 6.27%. Morley Fund Management Firms within the Morley group of companies manage £157bn from offices around theworld as at 30 June 2006. The property team manages in excess of £23bn of UKand European property assets, making Morley the largest property fund manager inEurope. The property team consists of 70 investment professionals and manages a range offunds on behalf of institutional, pension and retail clients. For further information see www.morleyproperty.com - ENDS - For further information: Capital & Regional:Martin Barber, Chief Executive Tel. 020 7932 8101 Redwood Consulting:Kate Hewson Tel: 020 7828 5553 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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