Shopping centre giant Capital & Regional has spent it’s first day as a Real Estate Investment Trust.
The resolution to covert to a REIT was passed at the company’s general meeting on 2 December 2014 which amended the Company’s Articles of Association.
The REIT regime allows Capital & Regional to benefit from a zero corporation tax rate on qualifying property income and capital gains.
Hugh Scott-Barrett, Chief Executive, said: “We have long stated our ambition to become a REIT which is focussed on dominant community shopping centres in the UK before the end of 2014 and we are pleased to be entering the New Year having achieved that goal.”
He added that Capital & Regional was “significantly transformed” from the company it was a year ago. In that time the company has acquired full ownership of The Mall Fund, a debt restructuring, the divestment of non-core assets and the exchange of contracts for the disposal of its German Joint Venture. “This is the culmination of many months of hard work by the management team,” Scott-Barrett said. “We can now focus fully on growing our core UK shopping centre portfolio and implementing the asset management initiatives outlined in our portfolio strategy.”
Capital & Regional has a £1.2 billion portfolio, primarily in town centre shopping centres and is the owner of and property and asset manager for the Mall Fund. It also has a 20% stake in the Kingfisher Centre in Redditch. With Ares Management, formerly known as AREA Property Partners, it is equal joint owner of a German retail property portfolio.
