14th May 2014 10:12
LONDON (Alliance News) - Capital & Counties PLC Wednesday said it plans to place up to 75.9 million new shares, representing almost 10% of its issued share capital, in an effort to raise funds to invest in its Covent Garden and Earls Court estates.
The property developer said the capital raised through the placing would provide it with the "financial flexibility and strength to accelerate a number of strategic investment opportunities across both estates over the short to medium-term."
The re-development of Earls Court is currently one of the most high-profile property schemes in London. The scheme, which could take a decade or more to complete, involves the redevelopment of the Earls Court 1 and 2 exhibition centres, as well as a much broader area around the centres.
Capital & Counties' Covent Garden estate, consists of numerous properties let to food and fashion retailers, and its popularity has helped the company's net asset value grow to GBP1.9 billion at the end of December 2013 compared with GBP791 million in December 2009.
CapCo expects to spend GBP85 million adding to and redeveloping its Covent Garden estate.
UBS Ltd, Bank of America Merrill Lynch and Oriel Securities Ltd are acting as joint bookrunners.
Capital & Counties shares were quoted down 1.6% at 343.30 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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