Sales continue at Capital & Regional
Published: 20 May, 2010
Capital & Regional, manager of the Mall, Junction and X-Leisure funds, is continuing to sell properties according to its latest interim management statement.
Between 31 December 2009 to 19 May 2010 Capital & Regional achieved six property sales ifrom its funds and joint ventures for £233m, and contracts have been exchanged to sell The Mall's Ilford shopping centre to Meyer Bergman for £71m at a net initial yield of 7.8 per cent.
At the same time occupancy across the three funds decreased from 94.4 per cent at 30 December 2009 to 94.2 per cent at 31 March 2010, as a result of the expiry of seasonal temporary lets and a number of administrations. However the company reports encouraging letting activity since the end of March, including the decision by Best Buy open its first UK store at Junction Thurrock
Chief executive Hugh Scott-Barrett said: "Strength in the investment markets has enabled both the group and the funds to deleverage further whilst freeing up capital for future growth. Increased interest in space from retailers is reflected in a number of long term lettings across the funds, which has enabled us to begin the transition from income protection to income growth. Actions taken so far this year position the Group to take advantage of an expected increase in the flow of investment opportunities later in the year."
