Capital & Regional And Morley Launch Retail Fund

LONDON-Capital & Regional and Morley Fund Management have agreed terms for the formation of a new retail park investment fund. C&R is selling six parks into the scheme for £165 million ($235 million) and Morley five parks for £171 million ($245 million).

By merging their portfolios of large scale retail parks, the partners believe they can enhance values by branding and by providing additional attractions. They see all of the assets being transferred into the fund as retail parks which are, or are capable of becoming, dominant in their catchment areas.

Royal Bank of Scotland has agreed an initial loan facility of £170 million ($245 million) which will enable the fund to carry out development work on its existing sites and to go out into the market to buy in additional stock.

Ian Womack, Head of Property at Morley said: ‘The next phase, in early 2002, will be to offer the opportunity to others to participate in the fund either with stock or cash. Our objective is to create a fund with national coverage which, at that stage, should have a value in excess of £1 billion ($1.43 billion).’