Capital & Regional plc Disposal of the Mall, Blackburn (5167M)
May 24 2022 - 3:08AM
UK Regulatory
TIDMCAL
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 GBP40 million in cash. This represents a premium to the
December 2021 valuation of GBP38.2 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 GBP3.7 million to
the Group's Net Rental Income for the year ended 30 December 2021.
The net cash proceeds of approximately GBP39 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 .
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END
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