Capital & Regional PLC - London-based mall owner controlled by Johannesburg-based blue-chip property firm Growthpoint Properties Ltd - Says it has reached an agreement with its lenders to restructure and reduce the debt secured over its four mall assets, including the launch of a fully underwritten open offer to raise GBP30.0 million.
Growthpoint Properties separately says it has underwritten the GBP30.0 million open offer at an issue price of 56 pence per share and will fund its commitment with existing debt facilities.
The mall facility currently comprises a GBP265 million debt facility with RBS and TIAA.
In 2019, Growthpoint took control of debt-laden Capital & Regional for GBP150 million.
"These proposed transactions, which will recapitalise the balance sheet, allow us to achieve just that and represent a significant and positive step forward for the Group. They will allow us to once again focus fully on continuing our repositioning and merchandising, while looking at how we can best leverage the expertise in our platform and, in due course, the reintroduction of cash dividends," said Capital & Regional boss, Lawrence Hutchings.
Current London C&R stock price: 55.94 pence, down 2.6%
Year-to-date change: down 20%
Current Johannesburg C&R stock price: ZAR11.20, down 5.4%
Year-to-date change: down 26%
Current Growthpoint stock price: ZAR13.82
Year-to-date change: up 9.9%
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Capital & Regional (CAL)