1st May 2008 18:15
Capital & Regional plc01 May 2008 1 May 2008 CAPITAL & REGIONAL PLC: The Mall Fund Capital & Regional plc ("The Company"), the co-investing property asset manager,notes the volatility in its share price and is aware of market concern aroundthe capital structure of The Mall Fund ("the Mall"), in which it holds a 24.2%stake. This announcement is designed to provide further detail on our preliminaryresults announcement (11 March 2008) as regards to the Mall's loan to value ("LTV") covenants. The Mall Fund has issued £1.4bn in Mall Bonds, which have an interest coverratio ("ICR") covenant but no direct LTV covenant. The Mall partnership deed provides that the partnership debt on an incurrencebasis should not exceed 60% of the aggregate of the property value and thecurrent market value of any other partnership assets. The £300m acquisition/capex facility with RBS provides that the loan to propertyvalue should not exceed 60% at any time. The Mall Common Terms Deed (which also includes the Mall Bonds) requires theMall to comply with both the LTV covenants noted above. At 31 March 2008 the RBS facility LTV test stood at 58.8%. As we mentioned in our preliminary results announcement, the Mall has a numberof options including, but not limited to, realisation of assets which willensure that the Mall remains within the agreed covenants. The Company and Morley Fund Management, the fund manager of the Mall, areworking closely together to this end. The Company intends to provide further information together with the InterimManagement Statement on 16 May. The Company is confident that these actions will ensure that the Mall willremain compliant with its covenants. - 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 see www.capreg.com - ENDS - For further information: Capital & Regional:Hugh Scott-Barrett, Chief Executive Tel: 020 7932 8101 Maitland Emma Burdett Tel: 020 7379 5151 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Capital & Regional