The Group's leisure investments have been managed since August 2009 by X-Leisure Limited, a new joint venture between Capital & Regional and Hermes in partnership with X-Leisure Limited's management. It is responsible for management of the X-Leisure fund and the Group's investments in Great Northern, Hemel Hempstead and Braehead, and oversees the SNO!zone operating business.
The X-Leisure fund is the largest specialist fund investing in UK leisure property, owning 17 properties throughout the UK and as at 30 June 2010 had a total floor space of 3.3 million square feet. The Group held 19.4% of the fund but this fell to 11.9% in July 2009 when it chose not to take up its full allocation under the open offer. X-Leisure Limited carries out the asset and non-FSA regulated fund management activities for the X-Leisure fund. Hermes acts as Operator, responsible for FSA regulated fund management activities.
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:
| Number of units |
Net income % | |
| Cine UK | 12 | 18.4 |
| Vue Entertainment | 3 | 5.8 |
| SNO!zone | 2 | 3.3 |
| UCI (Odeon) | 2 | 3.3 |
| Virgin Active | 3 | 2.7 |
| City Centre Restaurants (Frankie & Benny's) | 12 | 2.5 |
| Pizza Hut | 12 | 2.3 |
| Mitchells & Butler | 5 | 2.3 |
| Bowlplex | 3 | 2.0 |
| Holmes Place | 2 | 1.9 |
| At 30 June 2010 |
At 30 December 2009 | |
| Gross property asset value | £546m | £519m |
| Number of properties | 17 | 18 |
| Number of units | 327 | 337 |
| Initial property yield | 7.08% | 7.91% |
| Equivalent yield | 8.05% | 9.00% |
| C&R share | 11.9% | 11.9% |
| Bank debt | £322m | £354m |