Capital & Regional Regulatory News (CAL)

10 Jul 2006 07:01

Capital & Regional plc10 July 2006 10 July 2006 CAPITAL & REGIONAL PLC AND GE REAL ESTATE ACQUIRE MANCHESTER ARENA FOR £62 MILLION Capital & Regional plc and GE Real Estate UK, in a 30:70 joint venture, haveexchanged contracts to acquire the Manchester Arena Mixed Use Complex whichincludes the 20,000 seat MEN Arena, for £61.75 million from AnschutzEntertainment Group ('AEG'). The property, located on an eight acre site in the heart of Manchester CityCentre, comprises 120,000 sq ft of offices, a 1,075 space car park, ancillaryretail and the 20,000 seat MEN Arena. The Arena plays host to wide variety of music, sporting and comedy events. TheComplex was completed in 1995 as part of the Manchester Olympic Bid and is now awell established international venue. Its versatility has led to its use forconcerts, ice hockey, boxing, Disney shows, exhibitions and blue-chip AGM's. Ithas been nominated International Venue of the Year from 2001-04, and between2003-05 it has been awarded the title of Busiest Arena Venue in the World. TheArena is operated by SMG (UK) Ltd - an experienced operator of arenas and publicvenues worldwide. The Complex incorporates 120,000 sq ft of multi-let offices, of which 91,000 sqft is let as a call-centre. The property provides a good income profile with88% of the income secured for over eight years and 42% of the income linked toRPI. Fredrik Widlund, managing director of business development at GE Real Estate UK,commented: "This acquisition offered the opportunity to acquire a primemixed-use investment in the heart of Manchester City Centre. We are excited tobe looking at new and interesting opportunities which diversify our portfolio,especially when we can team up with true specialists, such as Capital & Regionalto manage the asset with a view to extracting growth." Xavier Pullen, deputy chief executive, Capital & Regional, said: "We aredelighted to be working with the team at GE on this prime investment inManchester where C&R has a long and successful history." The Senior Debt Facility is being provided by Bank of Scotland Corporate.Christopher Dee acted on behalf of the joint venture. Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/9035f_-2006-7-7.pdf 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 GE Real Estate GE Real Estate (www.gerealestate.com) is a world leader in commercial realestate capital solutions. Formed in 1972, the business has more than US$38billion in core assets with 44 offices located throughout North America, Europe,Asia, and Australia/New Zealand. GE Real Estate, backed by its parent company'sAAA rating, offers a broad range of financing, equity and servicing solutionsincluding: intermediate and long-term mortgage financing, restructuring andacquisition capital, niche equity investment, joint ventures, capital marketssecuritization and placements, and asset management. As one of the fastestgrowing units within GE Commercial Finance, Real Estate has experienced annualgrowth of more than 10% for the last ten consecutive years. GE Commercial Finance (www.gecommercialfinance.com) offers businesses anextensive array of financial services and products. With over US$260 billion inassets and an expertise in the mid-market, GE Commercial Finance provides loans,operating leases, financing programs and innovative structured capital to helpcustomers grow. GE Commercial Finance is a wholly owned subsidiary of theGeneral Electric Company (NYSE:GE), a diversified services, technology andmanufacturing company with operations worldwide. General Electric (NYSE: GE) is Imagination at Work - a diversified technology,media and financial services company focused on solving some of the world'stoughest problems. About AEG (Anschutz Entertainment Group) AEG is one of the leading sports and entertainment presenters in the world. Awholly owned subsidiary of The Anschutz Corporation, it owns or operates some ofthe world's best arenas and theatres, numerous sports franchises including theLakers (NBA), Los Angeles Kings (NHL) and The David Beckham Academy, and acollection of companies dedicated to producing, promoting and presentingworld-class live entertainment. In May 2005, AEG announced that it had joined forces with O2 to help transformthe former Millennium Dome and the surrounding area into the UK's most excitingand technically advanced music, sport and entertainment destination. It has beenrenamed 'The O2 and will open in 2007. AEG employs more than 3,000 staff in over 45 operating companies worldwide. Itsinternational head office is at STAPLES Center, Los Angeles, and its Europeanheadquarters is now based in London. - ENDS - For further information: Capital & Regional:Xavier Pullen, Deputy Chief Executive Tel. 020 7932 8040 Hudson SandlerMichael Sandler Tel: 020 7796 4133 This information is provided by RNS The company news service from the London Stock Exchange