4th Mar 2008 10:59
Capital & Regional plc04 March 2008 4 March 2008 CAPITAL & REGIONAL PLC: SIGNIFICANT NEW INVESTMENT IN THE FIX TRADE PARK UNIT TRUST Capital & Regional plc, the co-investing property asset manager, today announcesa significant new investment and change in the management structure in the FIXTrade Park Unit Trust. The Capital & Regional FIX UK portfolio specialises in Trade Parks throughoutthe UK. Capital & Regional is delighted to welcome new investors into the fund led byParadigm Real Estate Managers Ltd and the Bank of Scotland Corporate. Theseinvestors have acquired an 80% interest in the existing Jersey Unit Trust whichholds the portfolio and plan to expand and develop the portfolio in this veryinteresting and dynamic sector. Paradigm Real Estate Managers and Capital & Regional will asset manage theportfolio jointly and three members of the current Management Team will transferto Paradigm. Paradigm and Bank of Scotland Corporate are already represented inthe Trade Park sector with a £55m portfolio of assets located across the UK.This portfolio will be managed with the FIX portfolio to achieve scale economiesin management and market presence. C&R has assembled the portfolio since 2005 and built it up to a gross value ofcirca £180m including committed development expenditure. The portfolio size is1.7 million sq ft, comprising 51 Trade Parks in approximately 276 separateunits. There is a pipeline of new developments under contract of 84,000 sq ft. C&R is selling 80% of the units in the trade park unit trust for approx £35mgross. The transaction will remove £120m of debt from C&R's balance sheet,although it will retain exposure to 20% of this amount as a co-investor. Inaddition, the sale of the units will generate cash to pay down £35m of theGroup's core facility. In 2006 FIX contributed £200,000 towards Capital & Regional recurring profit.The contract is unconditional and is due to complete on 6 March. Bill O'Hara of Paradigm said "We are delighted with this investment in this veryinteresting sector and look forward to working with C&R going forward. Bycombining the management of the FIX and UK PREM Trade Park Portfolios we willhave the largest trade park portfolio in the UK, in a sector which hasrestricted supply, strong tenant covenants and a growing list of occupationalrequirements". Ross McNaughton of Bank of Scotland said: "We are similarly delighted with thisopportunity to invest alongside our longterm partners Paradigm as well asCapital & Regional in the FIX UK Unit Trust where we anticipate sharing in theperformance of this specialist area of the commercial property market whichoffers good rental growth potential and an excellent standard of occupationalspace for tenants." Xavier Pullen from Capital & Regional said: "This new fund offers the potentialfor greater scale and presence in the market. We look forward to working withParadigm and the new investors to create a significant business". 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 Paradigm Real Estate Managers Limited Paradigm was established to provide a conduit for equity funds into the propertymarket on behalf of private individuals, companies and institutions. The company provides opportunities to invest directly into the property marketby means of partnership and corporate structures. Paradigm co-invests equityjointly with investors in each project and asset manages each project or fundthrough to completion and exit. The current investment portfolio is around £1billion. - ENDS - For further information: Capital & Regional:Xavier Pullen, Deputy Chief Executive Tel. 020 7932 8000 MaitlandMartin Leeburn Tel: 020 7379 5151Emma Burdett Tel: 020 7379 5151 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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