Mall Fund value nudges up 1%
The co-owner and asset manager of the Mall shopping centre in Blackburn said the Mall Fund benefited from improved lettings activity and lease renewal in the first quarter of 2011.
Capital & Regional issued a stock market announcement with updated values of The Mall, The Junction and the X-Leisure Funds as at 31 March 2011.
The Mall Fund was valued at £1.09bn, a 1% rise in the first three months of the year and reflecting net initial yield of 6.93%. C&R owns 16.7% of the fund.
The statement went on: "The Mall valuation increase of 1% during the quarter is driven by income growth of 0.8% from new lettings and lease renewals. The net initial yield remained stable with an inward shift of 2 basis points on a like for like basis, following the sale of Bristol in January 2011."
A busy disposal programme last year included the sale of the Preston Mall from the Mall Fund to Aviva for £87m, at a yield of 7.6%.
The Blackburn centre's 220,000 sq ft extension opened in July anchored by Primark and Next alongside H&M, New Look, Peacocks, JD Sports & Bank.
Hugh Scott-Barrett, chief executive of Capital & Regional, said: "This growth has been encouraging, given the challenging market conditions facing our retail tenants, and this resilience has continued into April with further lettings and renewals under negotiation."
