Capital & Counties To Become UK REIT; Completes Earls Court Sale

(Alliance News) - Capital & Counties Properties PLC on Monday said it has completed the sale of ...

Alliance News 2 December, 2019 | 8:08AM
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(Alliance News) - Capital & Counties Properties PLC on Monday said it has completed the sale of its interest in Earls Court, London, and now expects to convert to UK real estate investment trust status before the end of 2019.

In mid-November, the FTSE 250-listed property investment & development company had agreed to sell its interests in Earls Court to APG and Delancey for GBP425 million.

At the time, the company said the sale - which excludes assets in 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".

On Monday, Capital & Counties said it has secured initial net proceeds from the asset sale of GBP156 million and expects to secure a further GBP211 million over the next two years.

Turning to operations, the company said trading performance on its property estate remains "encouraging", with footfall growth and average tenant sales continuing to trend upwards.

Meanwhile, the demand for office and residential space continued to be "strong", with high occupancy and rates of renewal.

Looking ahead, Capital & Counties said its "strong" balance sheet and "significant" financial flexibility positions it to capitalise on further investment opportunities.

The company said it has exchanged contracts to buy the freehold interest of 5-6 Henrietta Street, London, for GBP34 million, with completion expected later this week.

Capital & Counties said the newly acquired building produces an annual rental income of GBP1.2 million across 14,300 square feet.

In addition, on November 19, the company purchased the freehold interest of Sussex Mansions, also located in London, for GBP17.8 million. The building comprises a restaurant let to pizzeria Franco Manca, plus office and residential space, which generates an annual rental income of GBP600,000.

Capital & Counties also said it will target a progressive dividend policy over the medium-term by driving rental growth and securing income.

The stock was trading 0.5% lower in Johannesburg on Monday morning at ZAR46.14 a share, while in London, the shares were 1.0% higher at 244.80 pence each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Capital & Counties Properties PLC 255.00 GBX 0.47 -

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