Capital & Regional Regulatory News (CAL)

31 October 2016

Capital & Regional plc

("Capital & Regional" or the "Company" or "Group")

Disposal of The Mall, Camberley

Capital & Regional plc, the UK focused specialist property REIT, today announces the unconditional exchange of contracts for the sale of The Mall shopping centre in Camberley to Surrey Heath Borough Council for a cash consideration of £86.0 million, representing a net initial yield of 5.9%.

Completion of the sale is expected to take place by the middle of November 2016.

£45.2 million of the proceeds from the sale will be used to repay debt secured on the property as part of The Mall loan facility. The balance will be held for re-investment in the Company's shopping centre business, including the ongoing capex programme and acquisitions.

The Mall, Camberley contributed approximately £1.8 million to the Group's profit for the six months ended 30 June 2016. The valuation at 30 June 2016 was £88.5 million, representing a net initial yield of 6.15%.

Hugh Scott-Barrett, Chief Executive commented:

"The disposal of The Mall Camberley, which originated from an unsolicited approach from Surrey Heath Borough Council, will put us in a strong position to recycle capital for growth. We will look to reduce leverage, invest in higher yielding asset management initiatives and take advantage of the increasing number of attractive new investment opportunities which we have identified."

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.

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About Capital & Regional plc

Capital & Regional is a UK focused specialist property REIT with a strong track record of delivering value enhancing retail and leisure asset management opportunities across a c. £1 billion portfolio of in-town dominant community shopping centres. Capital & Regional is listed on the main market of the London Stock Exchange and has a secondary listing on the Johannesburg Stock Exchange.

Capital & Regional owns seven shopping centres in Blackburn, Camberley, Hemel Hempstead, Luton, Maidstone, Walthamstow and Wood Green. It also has a 20% joint venture interest in the Kingfisher Centre in Redditch and a 50% joint venture in the Buttermarket Centre, Ipswich. Capital & Regional manages these assets, which comprise over 950 retail units and attract over 1.7 million shopping visits each week, through its in-house expert property and asset management platform.

For further information see www.capreg.com.