Cogenpower Regulatory News (CGP)

4 Aug 2005 07:02

Halladale Group PLC04 August 2005 Halladale/Citigroup Property Investors: £78 million Acquisition CReAM Fund Now Fully Invested Halladale Group Plc ("Halladale"), the UK property co-investment, trading anddevelopment company, and Citigroup Property Investors, the real estateinvestment arm of Citigroup Inc ("CPI"), announces that its UK property fund -CPI Retail Active Management Programme ("CReAM") has acquired a portfoliocomprising five shopping centres in England for a total consideration of £78.1million. This acquisition is CReAM's fifth and final and brings total assets in the fundunder management to over £200 million. The fund is now fully invested, havingreached closure within 9 months. The acquisition of the retail portfolio totals approximately 500,000 sq ft andcomprises Locks Heath Shopping Centre in Fareham, Hampshire, Martlets ShoppingCentre in Burgess Hill, West Sussex, Central Square Shopping Centre inErdington, Birmingham, Bramley Shopping Centre in Leeds, and Forum ShoppingCentre in Wallsend, Newcastle-Upon-Tyne. The premises are being bought on a freehold basis except Burgess Hill, which isa long leasehold interest. Total annual rent is approximately £4.9 million andthe purchase price reflects a net initial yield of 5.9 per cent. Barclays provided senior debt. Jackson Criss and Ashurst advised CReAM. Thevendors, Lathe Investments, were advised by BCM and Forsters. David Lockhart, Chief Executive of Halladale commented: "This is another excellent acquisition for Halladale providing furtheropportunities to exercise our entrepreneurial asset management and developmentexpertise. CReAM has proved a tremendous partnership between Halladale and CPI,with commitment from both sides ensuring that the fund has been rapidly fullyinvested. We will be looking to deliver attractive returns to our investors andlook forward to creating new investment opportunities in the future." Roger Orf, Head of European Investments for Citigroup Property Investorscommented: "We are very pleased to be in a position to announce CReAM's last acquisition.Halladale and CPI have an excellent track record in this sector withtransactions to date totalling more than £300m. We look forward to working withHalladale to improve the CReAM assets and to continue delivering above averagereturns to our Core Plus investors." - Ends - For further information please contact:David Lockhart, Halladale Group plc 0141 204 4633David Rydell/Chris HamiltonBell Pottinger Corporate & Financial 020 7861 3232Nick Ellis, Collins Stewart Ltd 020 7523 8350Stuart Webster, Citigroup Property Investors 0207 508 8788Olivia Baker, Citigroup Corporate Affairs 0207 986 5605 About Halladale • Halladale is an entrepreneurial co-investment, trading and development company operating as an active asset manager primarily in the UK commercial property sector • Group activities span innovative on-balance sheet projects, co-investment joint ventures and increasingly the creation of co-investment vehicles with both single and multi-investor relationships • Halladale prides itself on its detailed, strategic, "hands on" approach through the involvement of senior management in all major projects • Co-investment activities are a significant element of the Group's business, accounting for 86 per cent of assets under management at 31 October 2004 • Co-investment partners include Bank of Scotland, Citigroup and Kodak Pension Fund managed by LaSalle Investment Management, Anglo Irish Private Equity and Carlyle Group • The value of Halladale's portfolio at 12 July 2005, including the aggregate value of co-investment vehicles, was £450 million. In the year ended 30 April 2005, profit before tax increased by 50 per cent to £3.92 million and the dividend increased by 38 per cent to 2.9p per ordinary share • Halladale was founded in 1991 by Chief Executive, David Lockhart, and has offices in Glasgow, Edinburgh and London • Halladale's shares were admitted to the AIM in April 2001. In April 2004, Halladale raised £15m through an issue of new Ordinary shares and convertible loan stock, effectively doubling the company's equity base • In 2004, Halladale shares were the best performing stock in the quoted property sector, rising 82 per cent over the 12-month period (Property Week 14 January 2005). • For more information on Halladale please visit http:// www.halladale.co.uk. About Citigroup Property Investors ("CPI") CPI is the real estate investment management business of Citigroup, the leadingglobal financial services company. A unit of Citigroup Alternative Investments,CPI provides investment opportunities in the public and private real estatemarkets to qualifying institutional and individual investors. With more than 75professionals, CPI manages $7 billion in real estate capital commitments throughits New York, Los Angeles, London and Hong Kong offices. This information is provided by RNS The company news service from the London Stock Exchange