Capital & Regional Regulatory News (CAL)

5 Jul 2006 07:00

Capital & Regional plc05 July 2006 5 July 2006 CAPITAL & REGIONAL PLC ACQUISITION OF GERMAN PORTFOLIO FOR €214 MILLION Capital & Regional plc, the co-investing property asset manager, today announcesthe acquisition of a €214m retail property portfolio, bringing the gross valueof its German assets to c. €450m. The portfolio, which is being acquired from a private individual, comprises 22mainly out of town big box retail properties (totalling 134,000 sq metres) and asubstantial retail distribution facility (52,000 sq metres). The portfolio alsoincludes 16 hectares (40 acres) of retail and commercial development land. 44%of the portfolio is let to the Metro Group, one of the largest retailers inEurope. The net income is estimated at €13.6m giving a net initial yield on theportfolio of 6.3%. Excluding the non income producing land the net initialyield is 6.8%. Following completion later this year, it is intended that the majority of theproperties will be included within the Hahn joint venture (90% C&R / 10% Hahn)and the remainder will be redeveloped and sold over the medium term. Theportfolio will enhance the earnings of the C&R group during the first full yearafter completion. ABN Amro's London branch is providing the senior debt on this new acquisition. Xavier Pullen, Deputy Chief Executive of Capital & Regional plc, said "Over thepast two years we have established a very good working relationship with ourpartners, the Hahn Group. Our first investment was made last year and wecontinue to look at further opportunities to add to our platform". - ends - For further information:Capital & RegionalXavier Pullen, Deputy Chief Executive Tel: 020 7932 8040William Sunnucks, Group Finance Director Tel: 020 7932 8125 Hudson SandlerMichael Sandler Tel: 020 7796 4133 This information is provided by RNS The company news service from the London Stock Exchange