Source - LSE Regulatory
RNS Number : 5167M
Capital & Regional plc
24 May 2022
 

24 May 2022

 

CAPITAL & REGIONAL PLC

("Capital & Regional" or "the Company" or the "Group")

UK company number 01399411

LSE share code: CAL   

ISIN: GB00BL6XZ716

LEI: 21380097W74N9OYF5Z25

 

Disposal of The Mall, Blackburn

 

Capital & Regional, the UK convenience and community focused shopping centre REIT has exchanged contracts for the sale of The Mall, Blackburn to the retail arm of the Adhan Group of Companies for £40 million in cash.  This represents a premium to the December 2021 valuation of £38.2 million.  Completion of the sale, which is subject to local authority freeholder consent, is expected to take place around the end of June 2022. 

 

The Mall, Blackburn contributed approximately £3.7 million to the Group's Net Rental Income for the year ended 30 December 2021.  The net cash proceeds of approximately £39 million will be used to repay debt secured on the property as part of The Mall loan facility.  The sale will reduce the Group's Net Loan to Value ("LTV") ratio by approximately 600 basis points.  A combination of this disposal, the anticipated Walthamstow residential receipt and the discounted purchase of debt on Hemel Hempstead would reduce the Group's Net LTV ratio, on a proforma basis, from 49%, at December 2021, to approximately 41%.

 

Lawrence Hutchings, Chief Executive, commented:

 

"The sale of The Mall, Blackburn at a premium to its December 2021 valuation provides further evidence of the stabilisation of asset values as well as renewed investor confidence in the sector and allows us to make another material reduction to Group leverage.

 

Together with the debt restructure and equity raise late last year, the recent acquisition of the Hemel Hempstead debt at a significant discount and major leasing commitments and loan amendments in Ilford, which we announced last week, this transaction represents a further significant milestone in restructuring the financial and operational position of the Group.  These ongoing improvements give Capital & Regional a solid platform from which to look to continue to execute our strategy for growth and support our plans for the resumption of dividend payments in the second half of the year.

 

I would like to thank the Blackburn centre team for their hard work and dedication during their time as part of the Capital & Regional Group. We have been a large part of this vibrant, diverse and important community for over 20 years, and we wish the community, our retailers and the local council continued success as the centre embarks on its next phase under new local ownership."

 

- ENDS -

 

For further information:

Capital & Regional plc                      020 7932 8000

Lawrence Hutchings

Stuart Wetherly

 

FTI Consulting                                  020 3727 1000

Richard Sunderland                        

Katie Hughes

capreg@fticonsulting.com

 



 

 

About Capital & Regional plc:

 

Capital & Regional is a UK focused retail property REIT specialising in shopping centres that dominate their catchment, serving the non-discretionary and value orientated needs of the local communities. It has a strong track record of delivering value enhancing retail and leisure asset management opportunities across its portfolio of in-town shopping centres. 

 

Using its in-house expert property and asset management platform Capital & Regional owns and/ or manages seven shopping centres in Hemel Hempstead, Ilford, Luton, Maidstone, Redditch, Walthamstow and Wood Green.

 

Capital & Regional is listed on the main market of the London Stock Exchange (LSE) and has a secondary listing on the Johannesburg Stock Exchange (JSE)

 

 

For further information see www.capreg.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
DISEAPSDASAAEFA
Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account.