Capital & Regional to support X-Leisure fund raising

26th May 2009 08:33

Property fund manager Capital & Regional said the X-Leisure Unit Trust, in which it has a 19.4% stake, has announced an open offer to existing unit holders.X-Leisure, for which Capital & Regional acts as property asset manager, intends to raise £50m through the issue of new units at 10p each, representing a 72.5% discount to the unit price prevailing at the end of March 2009.The open offer is subject to a number of conditions including the agreement of a new financing package with the banking syndicate providing the fund's main facility.The trust has already agreed a revised facility agreement which allows for the relaxation of loan to value (LTV) covenants and for the trust’s Brighton property to be refinanced. However, further amendments to the trust’s facility are being negotiate, including an additional relaxation of the LTV covenant and an extension to the life span of the facility. Capital & Regional expects to subscribe for the units being offered. A final decision will be taken ahead of the vote in June but the amount subscribed for is not expected to be less than 40% of its pro-rata entitlement.