TIDMCAPC
RNS Number : 9021C
Capital & Counties Properties Plc
22 October 2020
22 OCTOBER 2020
LEI: 549300TTXXZ1SHUI0D54
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT
JURISDICTION
FOR IMMEDIATE RELEASE
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
CAPITAL & COUNTIES PROPERTIES PLC ("CAPCO")
ADDITIONAL INVESTMENT OF GBP65 MILLION IN SHAFTESBURY PLC
Further to the announcement earlier today by Shaftesbury PLC
("Shaftesbury") of its intention to raise up to GBP307 million of
gross proceeds through a firm placing, placing and open offer and
an offer for subscription (the "Capital Raising"), Capco confirms
it has committed to subscribe for GBP65 million of new Shaftesbury
shares (the "Investment"), at the placing price of 400 pence,
resulting in a shareholding in Shaftesbury following completion of
the Capital Raising of over 25 per cent. Capco has also committed
to vote in favour of the requisite resolutions at the General
Meeting of Shaftesbury shareholders, due to be held on 17 November
2020.
The Board believes that the Investment is priced attractively in
view of the long-term prospects and resilience of prime central
London and is consistent with Capco's strategy to invest in
attractive opportunities on or near the Covent Garden estate.
Capco continues to actively manage its portfolio of assets with
a focus on creating long-term value for shareholders as well as
maintaining a strong balance sheet and significant liquidity to
manage the business through current market uncertainty and to
position it for long-term growth. Capco recently completed the sale
of the Wellington block for GBP76.5 million (in line with the 30
June 2020 valuation) which is reflective of the continued demand
for attractive prime central London assets. In addition, GBP105
million of deferred consideration from the Earls Court sale is due
to be received in November 2020 with the balance of GBP15 million
due in 2021.
Capco's strong financial position allows the Investment to be
funded from existing cash resources. On a pro forma basis(1) as at
30 June 2020, the Investment would result in net debt of
approximately GBP690 million, with net debt to gross assets and LTV
remaining stable at 25 per cent and 32 per cent respectively, and
over GBP600 million of cash and undrawn committed facilities.
Including Capco's holding in Shaftesbury shares, Capco has access
to over GBP1 billion of liquidity.
Throughout this period of COVID-19 uncertainty, Capco's priority
has been the health and safety of its people, customers and
visitors. Covent Garden's welcoming open air environment has
enabled the majority of its retail and hospitality customers to
reopen across the estate. Covent Garden and the West End have seen
a gradual recovery in footfall with the return of domestic visitors
and office workers; however following the recent increase in UK
COVID-19 infections, the Government has introduced local
restrictions and there remains a risk that further measures may be
implemented across central London.
Against a backdrop of significant market uncertainty and
challenging trading conditions, Capco is providing support to
customers where appropriate. Bespoke solutions have been agreed
which include rent deferrals, rent-free periods and other
arrangements and for certain customers, rental agreements are
linked to turnover for the second half of this year. There has been
a continuation of trends in rental collection seen in the previous
quarter into Q4, as set out in the Appendix.
Notwithstanding current disruption to business activity, Covent
Garden continues to attract high quality brands and operators,
including the recent introduction of Darjeeling Express and Vashi.
Capco continues to implement a number of marketing initiatives and
is collaborating closely with existing occupiers and stakeholders
to promote Covent Garden and the West End, encouraging a gradual
return to previous levels of trade and footfall over time. The
economic environment remains unpredictable however Capco is
confident in the long-term prospects of the West End, in particular
its landmark Covent Garden estate.
The Company has received financial advice on the Investment from
Rothschild & Co and also from its corporate brokers, BofA
Securities and UBS.
The person responsible for arranging the release of this
announcement is Leigh McCaveny, Acting Company Secretary.
ENQUIRIES
Capital & Counties Properties PLC:
+44 (0)20 3214
Ian Hawksworth Chief Executive 9188
+44 (0)20 3214
Situl Jobanputra Chief Financial Officer 9183
Head of Commercial Finance and +44 (0)20 3214
Sarah Corbett Investor Relations 9165
Media enquiries:
+44 (0)20 7796
UK: Hudson Sandler Michael Sandler 4133
+27 (0)11 447
SA: Instinctif Frederic Cornet 3030
About Capital & Counties Properties PLC
Capital & Counties Properties PLC is one of the largest
listed property investment companies in central London and is a
constituent of the FTSE-250 Index. Capco's landmark estate at
Covent Garden was valued at GBP2.2 billion (as at 30 June 2020)
where its ownership comprises over 1.2 million square feet of
lettable space. Capco owns a 26.3 per cent shareholding in
Shaftesbury PLC. The Company is listed on the London Stock Exchange
and the Johannesburg Stock Exchange .
www.capitalandcounties.com
About Shaftesbury PLC
Shaftesbury is a Real Estate Investment Trust with a portfolio
of real estate assets in London's West End. Focused on food,
beverage, retail and leisure, its portfolio is clustered mainly in
Carnaby, Seven Dials and Chinatown, but also includes substantial
ownerships in East and West Covent Garden, Soho and Fitzrovia.
Extending to 15.2 acres, the portfolio, comprises 607
restaurants, cafés, pubs and shops, extending to 1.1 million sq.
ft., 0.4 million sq. ft. of offices and 616 apartments. In
addition, Shaftesbury holds a 50% interest in the Longmartin Joint
Venture, which has a long leasehold interest, extending to 1.9
acres, in St Martin's Courtyard in Covent Garden.
For the financial year ended 30 September 2019, Shaftesbury
reported net rental income of GBP98.0 million and profit before tax
of GBP26.0 million. As at 31 March 2020, Shaftesbury reported a
portfolio valuation, including its share of the Longmartin Joint
Venture, of GBP3.7 billion and total assets of GBP3.8 billion.
APPENDIX
Quarterly rent collection summary
Gross Alternative
rents Collected Collected arrangements Outstanding
GBPm GBPm % % %
--------- -------------- --------------- ---------- --------------- --------------
Q1 16.2 15.9 98% - 2%
Q2 16.9 7.5 44% 53% 3%
H1 2020 33.1 23.4 71% 27% 2%
Q3 17.9 6.3 35% 62% 3%
Q4 16.8 6.2 37% 58% 5%
--------- -------------- --------------- ---------- --------------- --------------
H2 2020 34.7 12.5 36% 60%
4%
Collections as at 21 October 2020
NOTES TO THE ANNOUNCEMENT
1. Pro forma metrics take account of GBP88 million investment in
Shaftesbury (the second tranche acquired on 13 August 2020
representing 5.31 per cent of Shaftesbury's shares), GBP105 million
Earls Court deferred consideration expected in November 2020,
GBP76.5 million proceeds received in October 2020 from the sale of
the Wellington block and the GBP65 million Investment at the
placing price of 400 pence.
(2. Financial information included represents unaudited
figures.)
This press release includes statements that are forward-looking
in nature. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Capital & Counties
Properties PLC to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. These forward-looking statements are
made only as at the date of this announcement. Nothing in this
announcement should be construed as a profit forecast. Except as
required by applicable law, Capital & Counties Properties PLC
undertakes no obligation to update the forward-looking statements,
whether as a result of new information, future developments or
otherwise.
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