Last checked at 20 Jul 2012 07:00
20 July 2012
Capital & Regional plc
German Portfolio 4 Debt
Capital & Regional plc ("the Company") announces that its German portfolio 4 joint venture has received a Default Notice on its debt which forms part of the Talisman-6 Finance PLC CMBS. The default has been caused by the failure to meet the required loan to value test to extend the loan into the second year of its extension period. The Loan Servicer has indicated that as a consequence of this default its intention is that the loan will be put into special servicing. The debt currently amounts to €158 million, of which €18 million comprises junior debt, which the Company and its joint venture partner own. The debt of this portfolio has no recourse to any of the other German portfolios or the rest of the Capital & Regional group.
The Company's 2011 year end net asset value attributable to its share of the equity in this portfolio amounted to €9.2 million. A further €6.7 million was reflected in year-end net asset value in respect of the group's share of the junior debt in that portfolio, which had a nominal value of €9 million.
The Company believes that any adjustment arising from this default will not have a material effect on the Company's half year numbers, and it continues to work closely and constructively with the Loan Servicer.
The rest of the German joint venture is covenant compliant with lower gearing and continues to trade well, comprising assets with longer lease lengths which are largely let to food retailers with strong covenants.
Further information will be provided in our 2012 interim results which will be released on 15 August 2012.
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For further information:
Capital & Regional: | |
Hugh Scott-Barrett, Chief Executive | Tel: 020 7932 8000 |
Charles Staveley, Group Finance Director | Tel: 020 7932 8000 |
Maitland: |
|
Martin Leeburn | Tel: 020 7379 5151 |
Emma Burdett | Tel: 020 7379 5151 |
Notes to editors:
About Capital & Regional plc
Capital & Regional is a specialist property company with a track record of developing asset management opportunities in town centre shopping centres and out of town retail parks.
Capital & Regional founded The Mall and The Junction funds in conjunction with Aviva Investors. Capital & Regional acts as Property and Asset Manager for the Mall and Junction funds and holds 20.1% and 13.4% respectively of these funds.
Capital & Regional & AREA Property Partners each hold a 50% interest in a German retail property portfolio which is managed by Garigal Asset Management GmbH, in which Capital & Regional holds a 30% interest.
Capital & Regional also has an 11.9% stake in the X-Leisure fund, which is managed by X-Leisure Limited in which Capital & Regional holds a 50% interest.
Capital & Regional has a number of other joint ventures and wholly-owned properties.
For further information see www.capreg.com