Liberty International PLC, today announces it is placing up to 56.1 million
new ordinary shares through an accelerated book-building process to be carried out by Merrill Lynch International
representing up to 9.9% of the Group's issued ordinary share capital. Based on Liberty's Tuesday closing share price of
564 pence, the sale would represent a value of £316 million.
The proceeds will fund identified active management initiatives across the Group's fourteen UK regional shopping centres
which were valued at £4.4 billion at 30 June 2009, and fund capital expenditure, including tactical acquisitions, to
further Liberty's objectives for its prime Central London assets in Covent Garden and to fund Earls Court & Olympia
through to securing planning consent for comprehensive redevelopment. No more disposals are planned.
Liberty had a cash call in April this year, which has resulted in a total cash balance of £568 million and net external
debt of £3,390 million at 30 June 2009, representing a debt to assets ratio of 56%. But these funds are committed to
capital expenditure, which amounted to £172 million at 30 June 2009, in particular in relation to the extension at St.
David's, Cardiff development which is opening in October this year ( though still only 61% let with the new 260,000
sq.ft. John Lewis store opening on 24 September 2009) Funds are also committed to debt repayment and amortisation in 2009
and 2010 of £174 million,and the remaining REIT entry charge of £19 million by December 2010 and £103 million in total.
Liberty say that the availability of debt finance for real estate remains significantly constrained, with only a small
number of banks willing to advance new facilities and generally only against the most prime assets.
On the bright side, the rate of tenant failures in their estate has slowed further in the third quarter, with only 7
retailers, affecting 14 units, failing since the half year, compared with an aggregate 184 units out of CSC's 2,028 units
in the three quarters to 30 June 2009.
The Covent Garden estate continues to be the star performer. The estate was valued at £529 million at 30 June 2009.
Portfolio occupancy continues to be strong at 99% taking into account units under offer and under refurbishment, with net
rental income in line with expectations. It comprises around 750,000 sq.ft. over 44 buildings with 305
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