AREA to contribute £50m to Capital & Regional’s Junction equity raising

The retail and leisure investor said that AREA Property Partners would inject the majority of the equity into the retail parks fund, as revealed by Property Week earlier this month (09.04.09).

AREA, formerly Apollo Real Estate, will invest £50m with the remaining £15m to be raised from existing unit holders.

Units will be issued at a price of around 18p at a discount of around 40% to the net March unit price of 29.7p.

Capital & Regional said the issue, which is expected to complete in May, will be accompanied by more financially flexible banking arrangements.

This includes increasing the fund’s loan to value covenants to 90% until the end of September 2010 and an extension of the loan facility until 2014.

Capital & Regional also said its banks have agreed to temporarily waive the loan to value covenants during the equity issue process.