Crown Estate acquires Portsmouth retail park for EUR 72m

UK property company Capital & Regional announced that the Junction Fund has exchanged contracts for the sale of Ocean Retail Park Portsmouth to The Crown Estate for £60.8 mln (EUR 72 mln). The sale price reflects a net initial yield of 5.8% and a premium to the end-December 2010 valuation.

The Junction Fund has owned Ocean Retail Park Portsmouth since 30 September 2002. During this period the scheme has been comprehensively refurbished and asset-managed, including the recent receipt of planning permission for two additional 140-m² units within the car park.

The Junction Fund decided to dispose of the retail park as part of its strategy to focus on those properties that have greater asset management or development opportunities. The sale of Ocean Retail Park Portsmouth is the third disposal by the Junction Fund during the last 12 months, following Cambridge Close Retail Park Aylesbury in April 2010 and St Andrew's Quay Hull in September 2010.

The sale of Cambridge Close Retail Park Aylesbury and St Andrew's Quay Hull allowed the Junction Fund to make a capital distribution to investors of £42m in September 2010. This represents 33% of the NAV of the fund as at the time of the equity issue in May 2009. The Junction Fund bank debt has been reduced by 35% since May 2009, and will be reduced further following completion of the sale of Ocean Retail Park Portsmouth.

Capital & Regional has an interest of 13.4% in the Junction Fund.