26th Sep 2019 07:38
(Alliance News) - Capital & Counties Properties PLC said Thursday it has largely finalised preparations for the demerger of its Covent Garden business as a Central London-focused real estate investment trust.
In addition, the London and Johannesburg-listed property investor said there has been a "broad range of interest" expressed for an acquisition of its Earls Court business.
In late July, Capital & Counties said it planned to launch its property portfolio in Covent Garden as a new central London-focused real estate investment trust through a demerger process.
The remaining business of the group, which comprises its property interests in Earls Court, would be renamed EC Properties.
Capital & Counties said on Thursday that progress has been made with parties interested in making an acquisition of Earls Court, with relevant stakeholders indicating that some potential buyers may be acceptable.
The indicative pricing for the Earls Court business has continued to reflect a discount to its balance sheet value, the company said. As at June 30, the Earls Court portfolio was valued at GBP426 million.
Should a sale of the Earls Court business not be progressed sufficiently by the end of October, Capital & Counties said it would proceed with issuing documentation for the demerger of Earls Court and Covent Garden.
Should the demerger take place, it is expected to be completed by the end of 2019, with both resulting businesses taking up a dual-listing in London and Johannesburg.
By Dayo Laniyan; [email protected]
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