Last checked at 20 Apr 2009 07:05
20 April 2009
CAPITAL & REGIONAL PLC
JUNCTION FUND EQUITY ISSUE
Capital & Regional, the co-investing property asset manager, announces that the Trustee of The Junction Unit Trust ("The Junction") has issued a notice to unit holders to raise around £65 million in new equity. Under the terms of the transaction AREA Property Partners is proposing to invest £50 million with the balance to be subscribed by a number of existing unit holders.
Units are expected to be issued at a price of around 18p subject to certain completion adjustments. This represents a discount of around 40% to the March unit price net of the interest rate swaps mark to market adjustment, of 29.7p. The March unit price before adjusting for the mark to market was 40.2p.
The issue, which is expected to close by the end of May, will, on completion, be accompanied by changes in the Fund's banking arrangements designed to increase financial flexibility. These include an increase in the LTV covenant to 90 per cent in the period to 30th September 2010, reducing thereafter, and an extension of the facility to April 2014, or such earlier date as the fund is wound up.
The Junction's banks have agreed to temporarily waive LTV covenant conditions to allow the equity issue to proceed.
Further information on Capital & Regional's intentions on subscription as well as other information about the transaction will be provided with the 2008 Annual Results announcement on 24th April 2009.
Hugh Scott-Barrett, Chief Executive said: "I very much welcome AREA's proposed investment. Once completed, the new equity and the amendments to the banking arrangements will not only strengthen the Junction's financial position, but also enable its experienced management team to concentrate on asset management opportunities and allow the Fund to benefit from the cyclical recovery of the sector over the next four to five years."
The Junction is one of the UK's leading investors in retail parks and a recognised specialist in this sector of the property market.
For further information:
Capital & Regional
Hugh Scott-Barrett, Chief Executive Tel: 020 7932 8121
Charles Staveley, Group Finance Director Tel: 020 7932 8000
Maitland
Martin Leeburn / Richard Farnsworth Tel: 020 7379 5151
Notes to editors:
About Capital & Regional plc
Capital & Regional is the co-investing asset manager which specialises in town centre shopping centres, out of town retail parks, and urban entertainment complexes.
Capital & Regional founded the Mall and Junction Funds in conjunction with Aviva Investors Global Services Ltd. It also founded the X-Leisure fund with Hermes Investment Management Limited, and has a number of other joint ventures and developments. Its shares are quoted on the London Stock Exchange.
For further information see www.capreg.com