Shaftesbury and Capital & Counties Properties (Capco), two major property companies in London, have agreed to merge to create a combined portfolio of worth $6bn.
The combined property estate will feature lettable space in major destinations Covent Garden, Carnaby Street and Soho, reported Reuters.
Go deeper with GlobalData
Shaftesbury CEO Brian Bickell said: “The merged business will have an exceptional portfolio, located in popular and busy parts of London’s vibrant West End, and an experienced and innovative team drawn from both businesses.”
As per the terms of the all-share deal, shareholders of Shaftesbury will receive 3.356 new Capital & Counties Properties (Capco) shares for every share held.
This deal values Shaftesbury at about $2.37bn including the 25.2% interest that is already owned by Capco.
For shareholder of Capco, the deal is immediately expected to be earnings accretively. With regard to Shaftesbury shareholders, the deal is expected to be modestly earnings dilutive in the first two years following closure.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe current shareholders in Shaftesbury will own 53% of the merged entity – Shaftesbury Capital Plc. The remaining stake will be held by shareholders of Capco.
The new entity will be led by the Capco head Ian Hawksworth as chief executive.
Shaftesbury chief executive Brian Bickell has decided to seek retirement after the completion of the deal following his 36 years stint at the West End landlord, including 11 years as CEO. The chairman of Capco Henry Staunton will also retire.
Norges Bank, which owns 25% stake in Shaftesbury and 14% in Capo, has backed this transaction.
The combined portfolio will consist of 670 freehold buildings with 2.9 million ft2 of lettable space, featuring 2,000 shops, offices and flats. Retail will comprise 35% of the portfolio value, followed by hospitality and leisure with 34%, and offices 17% and residential 14%, reported The Guardian.
——————————————————————————————————
Image: The combined portfolio will consist of 670 freehold buildings with 2.9 million ft2 of lettable space. Credit: James Wheeler from Pixabay.
