MD quits Junction
Published: 06 January, 2009
Further evidence emerged of the troubles facing the out-of-town retail market has emerged at Junction fund, one of the largest specialist investors in the sector.
The value of units in the fund has slumped 60 per cent over the past two years and now Capital & Regional, the fund manager, which owns 27.3 per cent of the units in The Junction, has moved to shake up the its management.
John Gatley, managing director of retail parks, will leave the company on March 31 and the Junction fund will be run by Ken Ford, who is also responsible for The Mall, Capital & Regional’s in-town retail property fund.
Capital & Regional insisted that, at December 31 last year, the Junction fund had not breached the loan-to-value covenants of its borrowings. But in November the fund saw a reduction of 6.7 per cent in its valuation, leading to a massive 18.4 per cent slump in the unit value.
