18th Jan 2010 07:00
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: 020 7932 8121
Maitland
Martin Leeburn / Emma Burdett Tel: 020 7379 5151
Related Shares:
Capital & Regional