Capital & Counties Properties PLC (Capco) has agreed to acquire a 26.3% shareholding in Shaftesbury PLC (Shaftesbury) across two tranches for total consideration of £436 million, at a price of 540 pence per Shaftesbury share, representing a discount of 13.9% to the closing Shaftesbury share price on 29 May 2020.
The shares are being acquired from Veloqx (Jersey) Limited, as trustee of the Veloqx settlement, a discretionary trust established by Samuel Tak Lee for the benefit of himself and his immediate family.
“As long-term investors in the Covent Garden estate and the West End, the investment in Shaftesbury represents a unique opportunity to deploy our capital in an exceptional portfolio at an attractive entry price, which we believe will generate long-term value for Capco shareholders,” said Ian Hawksworth, Chief Executive of Capco.
”Capco’s world-class estate, strong balance sheet and significant financial flexibility ensure that the Company is well positioned. Whilst we can expect continued market uncertainty in the near term, we are confident about the long-term fundamentals and prospects for the West End and prime central London,” he added.
Capco last week has announced it was in discussions about the potential acquisition of a 26.3% shareholding in Shaftesbury.
Shaftesbury is a real estate investment trust which invests 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.