Last checked at 14 Oct 2013 07:00
14 October 2013
CAPITAL & REGIONAL PLC
SALE OF GREAT NORTHERN WAREHOUSE MANCHESTER
Capital & Regional plc ("the Company") today announces the unconditional exchange of contracts for the sale of its Great Northern Warehouse property, Manchester to Resolution Property for an initial cash consideration of £71.1 million. Part of the proceeds of the sale will be used to repay the loan secured on the property, following which there will be no debt on the Company's balance sheet.
The Company is entitled to additional deferred consideration resulting from the installation and letting of a digital media screen at the property. This will be subject to obtaining planning consent and, in the meantime, will not be reflected in the Company's net asset value.
Taking into account the deferred consideration and the deduction of rent free top ups, the Company expects the total consideration receivable to be close to the £72.5 million valuation of the property as at 30 June 2013. The borrowings, which are recourse to the Group, are secured against the asset totalled £57.5 million at an LTV of 79%.
Completion of the sale is expected to take place at the end of October 2013.
The net sale proceeds will be partly used to repay the outstanding debt secured on the property. The remaining proceeds will be held for general corporate purposes and for re-investment in the Company's core Shopping Centre business.
Great Northern Warehouse contributed £1.0 million to C&R's profit for the six months ended 30 June 2013, primarily as a result in changes in the mark to market of financial instruments. On a recurring basis, the contribution to profits was not material.
Hugh Scott-Barrett, Chief Executive commented:
"The disposal of Great Northern Warehouse is a critical milestone in the delivery of the Company's strategy, as it results in the repayment of all the remaining on-balance sheet debt and further reduces the Company's see through net debt to value. It also facilitates further re-investment in our core UK Shopping Centre business as we continue to execute our strategy for growth."
For further information:
Capital & Regional: | |
Hugh Scott-Barrett, Chief Executive | Tel: 020 7932 8121 |
Charles Staveley, Group Finance Director | Tel: 020 7932 8000 |
FTI Consulting: | |
Stephanie Highett Richard Sunderland Will Henderson Aleka Bhutiani | Tel: 020 7831 3113 |
Notes to editors:
About Capital & Regional plc
Capital & Regional is a specialist property company with a strong track record of delivering value enhancing retail and leisure asset management opportunities across a £1.3 billion portfolio, primarily in town centre shopping centres.
Capital & Regional founded The Mall in conjunction with Aviva Investors. Capital & Regional acts as Property and Asset Manager for the Mall and holds 20.3% of this fund.
Capital & Regional & Ares Management (formerly known as AREA Property Partners) each hold a 50% interest in a German retail property portfolio which is managed by Garigal Asset Management GmbH, in which Capital & Regional holds a 30% interest.
Capital & Regional has a number of other joint ventures and wholly-owned properties.
For further information, please see www.capreg.com.