15th Nov 2019 17:23
(Alliance News) - FTSE 250-listed Capital & Counties Properties PLC late Friday said it has agreed to sell its interests in Earls Court, London to APG and Delancey for GBP425 million.
The company said the sale, which excludes assets Lillie Square, West London, is on a cash-free and debt-free basis and was in "the best interests of the company and shareholders as a whole".
Moreover, the sale is consistent with the company's strategy of monetising investments at Earls Court, as it seeks to grow its central London property investment business, centred around Covent Garden.
Completion of the transaction is expected to take place before the end of November 2019, the company noted.
Chief Executive Officer Ian Hawksworth said: "Having prepared Earls Court for future development, we are now pleased to have agreed terms for the sale of our interests to APG and Delancey (on behalf of its client fund), an experienced real estate investment partnership which, with the support of Transport for London will take forward this important scheme for London.
"Following the disposal, Capco will be a strongly-capitalised property investment business centred around our landmark Covent Garden estate. The business is well-positioned to generate attractive long-term returns for shareholders. Backed by a strong balance sheet and with a significant investment pipeline, our access to substantial liquidity will enable us to capitalise on opportunities."
The stock closed up 2.2% at 268.30 pence in London on Friday, with Johannesburg shares ending up 1.5% at ZAR50.19 each.
By Arvind Bhunjun; [email protected]
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