Fund Valuation

RNS Number : 0593F

Capital & Regional plc

18 April 2011

 

18 April 2011

Capital & Regional plc

Quarterly Fund Valuations

Capital & Regional plc today announces that the unit values of The Mall, The Junction and the X-Leisure Funds as at 31 March 2011 were as follows: 

Fund	Valuation of    properties	Underlying valuation change in period 1	Change in unit value (geared) in period	Net initial yield	Unit value at 31 March 2011	Unit value at 31 December 2010	C&R percentage of fund 2
The Mall Fund	£1,090,750,000	1.0%	4.6%	6.93%	£0.4286	£0.4100	16.7%
The Junction Fund	£433,516,000	3.2%	9.4%	5.68%	£0.3342	£0.3053	13.4%
X-Leisure Fund	£540,700,000	2.4%	5.1%	6.84%	£0.3245	£0.3087	11.9%

¹  The underlying valuation change shows the like for like increase / (decrease) in the value of the portfolio in the quarter as a percentage of the value of the portfolio at the beginning of the period.

²  Capital & Regional own the following number of units in each fund: The Mall 157,742,057, The Junction 88,261,870, X-Leisure 91,949,578. The percentage ownership of The Junction is likely to fall by up to 0.1% as a consequence of adjustments to the number of units issued as part of the open offer.

There has been positive growth in the unit value and underlying valuations for all three funds during the quarter. The valuation growth has been driven by income uplift from new lettings and lease renewals in The Mall and The Junction and yield compression in X-Leisure.

The Mall valuation increase of 1% during the quarter is driven by income growth of 0.8% from new lettings and lease renewals. The net initial yield remained stable with an inward shift of 2 basis points on a like for like basis, following the sale of Bristol in January 2011.

The Junction valuation increase of 3.2% during the quarter is driven by income growth of 3.1% from letting activity, principally at the Maidstone and Thurrock retail parks. The net initial yield remained stable with an inward shift of 1 basis point on a like for like basis, following the sale of Portsmouth in March 2011.

The X-Leisure valuation increase of 2.4% during the quarter is driven by an inward shift of 18 basis points in the net initial yield combined with stable income.

Commenting on the valuations Hugh Scott-Barrett said:

"This growth has been encouraging, given the challenging market conditions facing our retail tenants, and this resilience has continued into April with further lettings and renewals under negotiation"

Further details and an update on current trading conditions will be provided in the Group's interim management statement which will be issued on 18 May 2011.

- ENDS -

For further information:

Capital & Regional:

Hugh Scott-Barrett, Chief Executive                                     Tel:  [phone]

Charles Staveley, Finance Director                                      Tel:  [phone]

Maitland:

Martin Leeburn                                                                      Tel:  [phone]

Emma Burdett                                                                       Tel:  [phone]

Notes to editors:

About Capital & Regional plc

Capital & Regional is a specialist property company with a track record of developing asset management opportunities in town centre shopping centres and out of town retail parks.

Capital & Regional founded The Mall and The Junction funds in conjunction with Aviva Fund Management. Capital & Regional acts as Property and Asset Manager for the Mall and Junction funds and holds 16.7% and 13.4% respectively of these funds.

Capital & Regional & 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 also has an 11.9% stake in the X-Leisure fund, which is managed by X-Leisure Limited in which Capital & Regional holds a 50% interest.

Capital & Regional has a number of other joint ventures and wholly-owned properties.

For further information see www.capreg.com

 

END

 

 

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