Area Property Partners, a US fund, is to recapitalise the UK’s largest retail park fund, the £734m Junction fund, to help prevent it breaching the terms of its banking agreements.

The investment house, formerly called Apollo Real Estate Partners, is in advanced talks to take the majority of a planned placing of units, thought to be valued at more than £65m. The placing is also open to the fund’s existing unit holders, including Aviva, Hermes and Capital & Regional, which is also its asset manager.

Capital & Regional confirmed toay it is in discussions with potential equity investors as part of its plans to strengthen its financial position.

It said: 'Progress also continues to be made on plans to provide long term stability to the X-Leisure Fund, in which Capital & Regional holds a 19.4% stake and is the property asset manager.'

It said further details will be provided on or before 24 April when Capital & Regional announces its 2008 results.

Financial Times

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