X-Leisure

 

What is the X-Leisure Fund?

The X-Leisure Fund is the largest specialist fund investing in UK leisure property, owning 18 properties throughout the UK and as at 30 December 2008 had a total floor space of 3.7 million sq feet.  Capital & Regional currently holds 19.4% of the fund and acts as Property and Asset Manager.  Hermes Investment Management acts as Fund Manager.

Investors hold units in a Jersey Property Unit Trust (JPUT) which allows exposure to a diversified portfolio of properties without direct investment and the ability to transfer units without incurring Stamp Duty Land Tax.

The fund's investment criteria are as follows:

  • 50% or more of rental income generated from leisure operators.
  • Either is, or is able to be, anchored by a cinema.
  • Either is the dominant scheme in a local catchment area or has the ability to become so.
  • Has asset management opportunities or has latent potential to deliver required performance.

Top five tenants by rental income (2008)

  Number 
of units
 
Net income 
%
 
     
Cine UK 12  15.8 
Vue Entertainment 6.7 
Sainsbury's 4.3 
Virgin Active (including Holmes Place) 3.6 
Mitchells & Butlers 2.9 

 

X-Leisure key statistics

  At 30 December 
2008
 
At 30 December 
2007
 
     
Gross property asset value £721m  £947m 
Number of properties 19  19 
Number of units 360  365 
Initial property yield 6.68%  5.06% 
Equivalent yield 7.68%  5.78% 
C&R share 19.4%  19.4% 
Bank debt £485m  £485m 

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