Last checked at 20 Jul 2009 07:00
20 July 2009
CAPITAL & REGIONAL PLC:
POST CLOSE STATEMENT
Capital & Regional Plc, the co-investing property asset manager, presents a brief statement adding to the normal announcement of its fund valuations as at 30 June 2009, the end of the first half of its financial year.
Operating Environment
Conditions in the retail property market remain challenging. Occupancy levels however are broadly unchanged quarter on quarter with fewer tenants entering into administration in the Mall in the second quarter. Collections as at the June quarter date were also ahead of the previous quarter. Although the trend towards flexible lower rent leases for smaller units continues, demand remains good for well configured and positioned space. At Mall Wood Green, New Look has taken the former Woolworth store (35,000 square feet) on a 10-year lease whilst Primark has leased the adjoining 75,000 square feet unit on a 25-year lease. Both leisure and our German portfolios continue to deliver a robust operating performance.
Banking Arrangements
Good progress is being made in the negotiation of the amended banking arrangements for both X-Leisure and the Group. Heads of Terms were signed on 26 June 2009 with X-Leisure's syndicate of banks which, once approved by respective credit committees, give the Fund the necessary additional financial flexibility, one of the conditions of the X-Leisure Open Offer. The transaction is expected to close around the end of July.
Progress has also been made in renegotiation of the Group's banking covenants. As part of the overall package that is under discussion, waivers have been agreed until 30 September 2009 in respect of both net asset value and gearing covenants to enable a longer term solution to be put in place. Details of the amended facility are expected to be announced in conjunction with the Interim Results in mid-August.
Fund Valuations
| Fund | Valuation of properties | Net Initial Yield | Unit value at | Unit value at | Underlying valuation change in period | Units owned by C&R | C&R percentage of fund |
|
| 30-Jun-09 | 31-Mar-09 |
| ||||
| Mall Fund | £1,354,665,339 | 8.25% | £0.2377 | £0.3651 | (9.3)% | 157,742,057 | 16.7% |
| Junction Fund | £589,834,466 | 7.35% | £0.2368 | £0.4020 | (4.4)% | 88,176,870 | 13.4% |
| X-Leisure Fund | £524,550,000 | 7.99% | £0.4030 | £0.4643 | (2.7)% | 51,899,578 | 19.4% |
Notes:
(1) The underlying valuation change shows the increase/(decrease) in the value of the portfolio in the period as a percentage of the value of the portfolio at the beginning of the period.
(2) This reflects the percentage ownership by C&R of X-Leisure prior to the capital raise becoming effective. This is expected to happen around the end of July.
(3) The Junction unit value reflects the impact of dilution from the capital raise.
(4) The valuation for X-Leisure reflects the impact of the sale of O2.
- ENDS -
For further information:
Capital & Regional:
Hugh Scott-Barrett, Chief Executive Tel: 020 7932 8121
Charles Staveley, Group Finance Director Tel: 020 7932 8910
Maitland
Martin Leeburn Tel: 020 7379 5151
Emma Burdett Tel: 020 7379 5151