The Junction retail warehouse fund has sold the St Georges Retail Park in Leicester for £32m.

The fund, which is asset managed by Capital & Regional, has agreed simultaneous exchange and completion of the park to a fund managed by JP MorganAsset Management in conjunction with its operating partner, Kirkstone.

Capital & Regional said the sale proceeds would be used to reduce the fund's overall debt. This will cut the loan-to-value ratio of the fund, which at the end of October was 60%, by around 50 basis points.

The company is considering all options for the fund, which is 90% owned by it, Aviva Investors and Hermes, including a possible restructuring, in order to provide it with a viable future and a stable capital structure.

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