Property fund manager Capital & Regional has prompted a 12 per cent increase in its share price, telling investors it was planning to sell up.
The firm announced it was considering a partial sale of its German assets, valued at £530 million.
“We believe that the (partial) sale of the German portfolio is crucial, as we regard the chance high that Capital & Regional may breach the bank covenant at group level,” JPMorgan property analysts said, it has been reported.
Shares in the company have been hit hard by falling commercial property values – it previously needed to raise £286 million from sales of units in its Mall fund.
International companies are still drawn to the capital as its business property is well situated to serve financial and insurance markets.Share: