CRF Ciref

 

TIDMCRF 
 
RNS Number : 1772P 
Ciref PLC 
19 March 2009 
 
 
 
 
 
Ciref Plc ("Ciref" or the "Company") 
 
 
 
 
JOINT VENTURE TRANSACTION 
 
 
 
 
The Company announces that it has agreed the terms of the capitalisation of 
shareholder loans in Modus Corovest Coventry Limited ("MCCL") (the 
"Transaction") which owns the West Orchards Shopping Centre in Coventry (the 
"West Orchards Development"), West Midlands. MCCL was (before the 
capitalisation) a 50:50 joint venture between Ciref Coventry Limited and Modus 
Property Group Limited ("Modus"). Ciref plc holds an 81.25% interest in Ciref 
Coventry Limited. 
 
 
The West Orchards Development comprises an existing 210,000 sq ft shopping 
centre which is proposed to be expanded as part of a 10 year regeneration 
project for the central Coventry retail precinct. The Centre is anchored by a 
100,000 sq ft Debenhams department store. 
 
 
Under the terms of the Transaction, Ciref Coventry Limited and Modus have 
converted the entire outstanding  amounts of their shareholder loans to MCCL 
into the ordinary share capital of MCCL. As a result of the Transaction, 
Ciref Coventry Limited has converted GBP3.72m of shareholder loans into the 
ordinary share capital of MCCL and thereby increased its total equity 
shareholding in MCCL to approximately 99.8%. The capitalisation has been 
completed without requiring Ciref to make a further investment into MCCL. 
 
 
The completion of the Transaction was subject to the approval of Norwich Union, 
the principal provider of debt finance to MCCL and it continues to remain 
supportive of the West Orchards Development. 
 
 
Following the Transaction, MCCL's financial results will be fully consolidated 
into the Company's accounts. 
 
 
As at 30 September 2008, the West Orchards Shopping Centre was valued at GBP53m, 
which reflected a GBP14.3m write-down in the value of the property for the year 
then ended. MCCL reported a net loss after tax of GBP14.4m for the 12 months 
ended 30 September 2008, as a result of the re-valuation. 
 
 
As at completion date, the impact on Ciref's NAV as a result of the 
consolidation is an uplift of c. 2.59p per share. 
 
 
 
 
Enquiries 
 
 
+------------------------------------+------------------------------------+ 
| Ciref Plc                          | +27(0)21 683 3829                  | 
| Gavin Tipper - Chairman            |                                    | 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Singer Capital Markets             | +44(0)203 205 7500                 | 
| Nicholas How / Richard Savage      |                                    | 
+------------------------------------+------------------------------------+ 
| Powerscourt                        | +44(0)207 250 1446                 | 
| Elizabeth Rous                     |                                    | 
+------------------------------------+------------------------------------+ 
 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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