Last checked at 15 Jul 2008 07:00
15 July 2008
CAPITAL & REGIONAL PLC:
Post-close statement
Capital & Regional plc, the co-investing property asset manager, today presents a brief statement adding to the normal announcement of its fund valuations as at 30 June 2008, the end of the first half of its financial year.
Progress in improving financial resilience
Following the successful completion of the Mall rights issue, outstanding amounts due to Royal Bank of Scotland have been repaid and the bank facility (which contained a Loan to Value covenant) has been cancelled.
The £286 million sale of three Malls to Carlyle was completed on 2 July. The proceeds will be used to degear the fund further. The June valuations set out below reflect the yield impact of the sale on the remainder of the portfolio.
C&R's proportionate share of Mall debt has reduced from 24.2 per cent to 16.7 per cent as a result of its decision not to take up its rights in the issue.
Group and fund level gearing tests continue to be met. We are continuing to pursue a number of other opportunities for reducing gearing. These are well progressed. Further details will be provided on or before 28 August when the interim results are announced.
Fund Valuations
| Valuation of properties (1) | Unit value at 30 June 2008 (2), (3) | Unit value at 31 December 2007 | Underlying valuation change YTD (4) | Change in unit value (geared) YTD (5) | Units owned by C&R | C&R percentage of fund | |
| Mall Fund | £2,573,750,000 | £1.2450 | £2.0642 | (15.1)% | (39.7)% | 157,742,057 | 16.7% |
| Junction Fund | £1,055,824,359 | £1.5010 | £1.8704 | (9.4)% | (19.7)% | 85,000,000 | 27.3% |
| X-Leisure Fund | £890,200,000 | £1.4568 | £1.6775 | (6.9)% | (13.2)% | 51,899,578 | 19.4% |
Notes:
(1) The Mall Fund valuation includes the three Malls sold to Carlyle on 2 July at the agreed sale price.
(2) The unit price in The Mall Fund has fallen from £1.7752 as at 31 May 2008 to £1.3637 as at 30 June 2008 due to a reduction in valuations, and has fallen a further 11.9 pence to £1.2450 as a result of dilution from the Mall rights issue.
(3) Including the surplus on revaluation of interest rate swaps and fixed interest debt, the unit value of The Mall Fund at 30 June 2008 is £1.3055 and the unit value of The Junction Fund as at 30 June 2008 is £1.5990. The unit value of The Mall Fund does not include the benefit of performance fee clawback to the fund.
(4) The underlying valuation change shows the increase/(decrease) in the value of the portfolio as a percentage of opening value adjusted for additions and disposals, over the six months.
(5) The change in unit value reflects the movement in the capital value (including the impact of the Mall rights issue) of the fund over the six months. Investors separately benefit from quarterly distributions of net income and periodic capital distributions.
- ENDS -
For further information:
Capital & Regional: Tel: 020 7932 8000
Hugh Scott-Barrett, Chief Executive
Maitland Tel: 020 7379 5151
Martin Leeburn / Emma Burdett
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 Morley Fund Management. 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
Forward Looking Statements
This document contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results may differ materially from those expressed in or implied by these statements. Many of these risks and uncertainties relate to factors that are beyond Capital & Regional's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors such as the Company's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this document. Capital & Regional does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document. Information contained in this document relating to the Company should not be relied upon as a guide to future performance.