The Mall Limited Partnership (the 'fund') open offer

Article date: 19 June 2008

The fund today announces that an overwhelming majority of its investors in the Mall Unit Trust have voted in favour of resolutions to approve a £286.3 million open offer of new units in the fund. Ninety seven per cent of votes cast on the resolutions were voted in favour.

The bulk of the proceeds of the open offer will be used to repay bank debt and reduce the loan to value ratio of the fund.

This will place the fund on a stronger financial footing, removing the risk of forced sales and allowing the managers, Morley and Capital & Regional plc, to focus on maximising fund performance through the active management of the asset portfolio.

In connection with the open offer, by the end of September Morley proposes to establish a new corporate governance structure, which is innovative for a fund of this nature, and has also added a vote in 2011 as to whether or not the Fund life should be extended beyond 2012

The open offer went unconditional on 19 June 2008 and is anticipated to complete on 27 June 2008.

Ian Womack, Morley's managing director, property said: "We have worked in tandem with the investors to find constructive solutions to difficult issues. We are delighted the investors have recognised this as viable medium to longer-term solution and by voting in support of the proposals have re-enforced their support and endorsement of the fund.

"The fund can now move forward in a positive manner that will enable us to focus on delivering strong performance."

Douglas Armstrong of Dickson Minto, who advised a number of the investors in the fund, added: "This was an excellent example of what can be achieved when a fund's managers and investors work together to find solutions to difficult issues when they arise. My clients are pleased with the outcome and wish to re-enforce their support for the Fund and its managers, who have been prepared to work constructively with the investors."

Morgan Stanley & Co provided financial advice and Berwin Leighton Paisner provided legal advice to the Mall Limited Partnership and the Mall Unit Trust in connection with the open offer.


For more information contact:
Angela Warburton
Morley Corporate Communications
Telephone: +(44 (0)20 7809 8618

Notes to editors:
The Mall Unit Trust is an unregulated collective investment scheme for the purpose of the UK Financial Services and Markets Act. Information regarding the scheme is therefore intended only for those to whom the scheme can be promoted under the Act.  As this is an unregulated collective investment scheme all or most of the protections provided by the UK regulatory system do not apply and compensation under the Financial Services Compensation Scheme will not be available.  Information regarding the scheme should not be regarded as constituting an offer to invest.

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