Capital & Regional, the UK co-investing property asset manager, said on Wednesday that its 19.4%-owned and managed X-Leisure Fund has completed the sale of the 02 Centre on London's Finchley Road for 拢92.5 mln (EUR 103 mln). The property has been sold to US investment management firm Matterhorn Capital. The proceeds will be used to repay the fund's debt.
Capital & Regional, the UK co-investing property asset manager, said on Wednesday that its 19.4%-owned and managed X-Leisure Fund has completed the sale of the 02 Centre on London's Finchley Road for 拢92.5 mln (EUR 103 mln). The property has been sold to US investment management firm Matterhorn Capital. The proceeds will be used to repay the fund's debt.
'The sale is part of the broader strategy to strengthen the financial base of the X-Leisure Fund, the largest specialist fund investing in leisure property in the UK,' the company said in a statement. The fund is in discussions with investors about a capital increase and is seeking to amend the terms of its banking arrangements to create additional financial flexibility.
The Fund has separately agreed with its syndicate of lending banks a waiver for the Loan to Value Covenant until the end of May 2009 in order to facilitate implementation of this strategy.
The 02 centre is a modern urban entertainment centre containing a multiplex cinema, health club, a mix of bars and restaurants and retail on a total of 271,620 sq ft of space.
