FINANCE: Capital & Regional is to increase its holding in the Mall Fund from 91.82% to 99.13%.
In a trading update today, the shopping centre owner and manager confirmed that the Mall Fund has agreed to redeem 69.5m units, held across seven minority unit holder accounts, representing 7.38% of the total number of the units currently in issue.
The unit redemption will be at 39p per unit. The total cost of the redemption will be £27.1m.
The Mall Fund has agreed amendments to its five-year secured bank facility with Morgan Stanley to convert the £25m capex facility into an additional loan of £30m increasing the total term loan to £380m.
The amendments agreed will increase the interest rate margin by 20 bps across the £380m facility, meaning on draw down the cost of debt would be 3.46% based on current three-month LIBOR.
The Mall Fund property portfolio valuation has increased 2.5% since 30 June 2014. It now represents a 6.36% net initial yield.
Chief executive Hugh Scott-Barrett said: “It is encouraging to see a further increase in valued income in the third quarter which, when combined with yield compression of 12 basis points, has contributed to the 2.5% increase in Mall property values in the period.”
