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The fund manager, which is battling to curb rapid growth in group gearing as a result of plummeting property values, confirmed late on Tuesday it had sold half its equity interest in the portfolio to U.S private equity fund Apollo Real Estate Advisors for 65.6 million euros in cash.

Capital & Regional's (CAL.L: Quote, Profile, Research) shares, which have fallen more than 80 percent in the last 12 months, were trading up at 179.5 pence at 0736 GMT, amid a 0.6 percent rise in broader property stocks as measured by the FTSE 350 Real Estate Index .

The proceeds from the transaction will be used to reduce company gearing and bolster Capital & Regional's effort to avert possible breaches of loan terms linked to its multi-billion pound UK property funds.

The German portfolio comprises 50 out-of-town income producing shopping centres and retail parks across western Germany. Capital & Regional said the new joint venture would actively pursue asset management opportunities to unlock full value potential of the portfolio.

Source: http://uk.reuters.com/