Capital & Regional set to sell fresh assets after its funds slump in value
Co-investing property fund manager Capital & Regional hinted yesterday that further sales of its assets were likely, as it moves to cope with the slump in the property market.
The company, which is one of the biggest property asset managers in the country and owns a number of large shopping centres and out of town retail parks in Britain, said in a statement yesterday that it was pursuing “a number of other opportunities for reducing gearing”.
London-based Capital & Regional is under pressure to make asset disposals due to the falling value of its funds.
Worst affected has been its flagship Mall Fund, which fell in value in the first half of the year by 40 per cent.
At the start of the month, the firm completed a heavily discounted sale of three shopping malls to American group Carlyle for £286m. At the end of March the three shopping centres in Chester, Epsom and Edgware were valued at £339.8m. The firm could have breached its banking covenants if the sale had not been successful.
