Last checked at 30 Apr 2009 07:00
30 April 2009
CAPITAL & REGIONAL PLC
JUNCTION FUND EQUITY ISSUE
Capital & Regional, the co-investing property asset manager, today announces that the unit holders in The Junction Unit Trust (the "Junction fund") have voted in favour of changes required to the Junction fund to facilitate the proposed equity issue and the new management structure of the Junction fund. The equity issue will raise around £65 million. Under the terms of the transaction AREA Property Partners is proposing to invest £50 million of the £65 million being raised, with the balance being subscribed by a number of existing unit holders. Capital & Regional will be subscribing for £600,000 of new units and has an option to subscribe for up to a further £2 million of units within 3 months of completion.
The issue, which is expected to close by the end of May, will, on completion, be accompanied by changes in the Junction fund's banking arrangements designed to increase financial flexibility.
The Junction fund is one of the UK's leading investors in retail parks and a recognised specialist in this sector of the property market.
Morgan Stanley & Co Limited ("Morgan Stanley") is acting as financial advisor to the Junction fund in relation to this transaction.
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
Morgan Stanley
Morgan Stanley is acting solely for the Junction fund and for no one else in connection with the transaction and will not be responsible to any other party for providing the protections afforded to clients of Morgan Stanley nor for providing advice in relation to the transaction.
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 / Emma Burdett Tel: 020 7379 5151