Capital & Regional Regulatory News (CAL)

11 June 2012

Capital & Regional plc

Acquisition of 35% interest in The Junction Thurrock Unit Trust

and sale of West Thurrock Retail Park

Capital & Regional plc announces that the Junction Fund has completed the acquisition of the remaining 35% minority interest in the Junction Thurrock Unit Trust from Strathclyde Pension Fund Property Unit Trust No 2.

Simultaneously with the above transaction West Thurrock Retail Park and the adjacent Kiddicare unit have been sold to Strathclyde Pension Fund Property Unit Trust No 2.

The net impact of the transactions involved a balancing payment of £3.9m from the Junction Fund to Strathclyde. When compared with the prevailing valuations and the impact of expected redevelopment profit from the Leisure Park the Junction Fund paid a small premium reflecting the full control that buying out the minority interest provides.

This leaves the Junction Fund holding 100% of Lakeside Extra Retail Park, Tunnel Retail Park and Lakeside Leisure Park at Thurrock. Together these schemes provide 268,000 sq ft of retail space and opportunities that include redevelopment of the former cinema at Lakeside Extra to provide 30,000 sq ft of additional Open A1 non-food retail and a comprehensive redevelopment of the Leisure Park.

The Junction Fund now consists of an attractive mix of both both mature assets and development opportunities comprising Imperial Retail Park in Bristol, Abbotsinch Retail Park in Paisley, Telford Forge Retail Park in Telford and the schemes at Thurrock. The development opportunities include 70,000 sq ft of additional retail space at Paisley and development of a mixed use scheme on a brownfield site in Oldbury which has outline consent for 170,000 sq ft of retail.

The Junction GP is actively considering its strategic options to maximise value for investors.

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For further information:

Notes to editors:

About Capital & Regional plc

Capital & Regional is a specialist property company with a track record of developing asset management opportunities in town centre shopping centres and out of town retail parks.

Capital & Regional founded The Mall and The Junction funds in conjunction with Aviva Investors. Capital & Regional acts as Property and Asset Manager for the Mall and Junction funds and holds 20.1% and 13.4% respectively of these funds.

Capital & Regional & AREA Property Partners each hold a 50% interest in a German retail property portfolio which is managed by Garigal Asset Management GmbH, in which Capital & Regional holds a 30% interest. 

Capital & Regional also has an 11.9% stake in the X-Leisure fund, which is managed by X-Leisure Limited in which Capital & Regional holds a 50% interest.

Capital & Regional has a number of other joint ventures and wholly-owned properties.

For further information see www.capreg.com

About The Junction Fund

The Junction is a specialist retail park fund, owning four retail parks and two development sites with a total lettable space of over 1.2 million square feet.

The Junction key statistics (at 31 December 2011)

Gross property asset value £288m

Number of properties 6

Number of units 84

Initial yield 5.68%

Equivalent yield 6.92%

C&R share 13.4%

For further information see www.thejunction-uk.com