FINANCE: Capital & Regional is on track to convert to a specialist shopping centre REIT by the end of the year as it continues to sell off non-core properties.
Updating the market this morning, C&R said that the value of its Mall portfolio had increased by 2.5% to £723m in the three months ended 30 September, with 52 new lettings across the portfolio adding £3.1m in rent.
The administration of Phones4U meant that total rent across the UK shopping centre portfolio dipped marginally year-on-year to £68.3m, down from £68.7m in September 2013.
As part of its strategy to specialise, the firm has been offloading non-core assets and, with partner Karoo, yesterday sold its 50% stake in the Waterside shopping centre in Lincoln to Tesco Pension Fund Trustees for £46m – a 5.88% yield.
C&R said proceeds of £15.7m from the sale would be used principally to repay its capital borrowings.
Chief executive Hugh Scott-Barrett said: “This quarter has been one of significant progress as we work steadily towards building Capital & Regional into the leading UK community shopping centre REIT. The success we have achieved with Lincoln since its acquisition in 2011 not only demonstrates our ability to add value to our assets, but also our ability to crystallise that value through a timely and profitable sale. The sales price achieved in Lincoln confirms our positive outlook for further increases in property values during Q4.”
He added: “This is a truly transformational time for Capital & Regional and our immediate focus now is on completing the restructure of the Mall and achieving conversion to REIT status next month, while continuing to enhance our portfolio by progressing the asset management initiatives that we have identified.”
