LONDON (ShareCast) - Shopping centre developer Capital & Regional (C&R) increased first-half profit and said it had taken control of a property fund in a cut-price deal.

C&R, which owns malls around the UK and in Germany worth £1.2bn, increased post-tax profit to £11.7m from £3.7m a year ago and hiked its interim dividend to 0.35p per share from 0.25p on an enlarged shareholder base.

Pro-forma net asset value (NAV) per share rose 8.1% to 53p against December 2013.

C&R now has a controlling 91.8% holding in the Mall fund after buying 62.56% of units in the fund in July at a discount of 5.4% to its valuation.

Chief executive Hugh Scott-Barrett said: "We are entering a very exciting period for Capital & Regional, in which the group will benefit from its enlarged stake in the Mall and significant asset management initiatives at a time when retailer interest in both upsizing and taking new space in well located town centre schemes is increasing.

"The continuing strength of investment markets is also expected to provide support for a further uplift in valuations during the rest of this year."

Shares in C&R rose 0.25p or 0.5% to 47p at 08:59 in London.

PW

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