Capital and Regional Plc, the co-investing fund manager, said today that it had recovered strongly in 2010, as it swung to a £46.4 million profit from a loss of £113 million the previous year. During the year the firm firstly de-geared, selling assets and reducing debt to get it's LTV down from 76% to 66%, then began investing again.

C&R owns a £28.8 million stake in 3 UK funds, The Mall, The Junction and X Leisure, which increased in value by £197 million to £2.132 billion, to give a total return for the year of 18.36%. The valuation gains seen in their UK retail property values in 2010 have been significantly driven by increases in rental income.

During the year it disposed of 6 properties in The Mall Fund for £340.8 million, 2 properties in the Junction Fund for £142.3 million and 2 in the XLeisure Fund for £59.3 million. Occupancy levels at the remaining properties improved 1.5% to 95.9%, with the number of administartions declining significantly from 108 in 2009 witha passing rent of £9.1 million to 65 with a passing rent of £3.1 million.

John Clare, Chairman said

"Capital & Regional has made significant progress in 2010. A year which began with the continued degearing of Group and fund balance sheets ended with a renewed emphasis on growth. Last month we saw the purchase of the Waterside Shopping Centre in Lincoln, the first acquisition by the Company since 2007."