Business
Sale of Earls Court interests for £425 million
Sale of Earls Court interests for £425 million.
About this update from Shaftesbury Capital Plc
[{"type":"text","content":"\n \nRNS Number : 6459T Capital & Counties Properties Plc 15 November 2019 \n\n15 November 2019 \n \nLEI: 549300TTXXZ1SHUI0D54\nNOT 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\nFOR IMMEDIATE RELEASE \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \nCAPITAL & COUNTIES PROPERTIES PLC (\"Capco\" or \"the Company\")\n \nSale of Earls Court interests for £425 million\n \nCapco is pleased to announce that it has exchanged contracts for the sale of its interests in Earls Court, excluding Lillie Square, to APG and Delancey (on behalf of its client fund) for £425 million (the \"Disposal\").\n \nThis transaction is consistent with Capco's strategy of monetising investments at Earls Court over time with a focus on growing 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.\n \nHighlights:\n \n· Disposal to APG and Delancey's client fund (the \"Purchaser\") is for total consideration of £425 million, on a cash-free and debt-free basis which compares to a balance sheet value at 30 June 2019 of £508 million;\n \n· Payments will be made to Capco on a phased basis, with 45 per cent payable on completion and the balance over two years. Net proceeds from the initial payment are expected to be approximately £156 million (adjusting for net debt, transaction-related costs and other completion items). The balance of £211 million will be payable in two equal instalments,12 months and 24 months after completion;\n \n· The Board unanimously considers the Disposal to be in the best interests of the Company and shareholders as a whole;\n \n· On a pro forma basis as at 30 June 2019 following the Disposal, Capco's loan to value is reduced from 19 per cent to 15 per cent with cash and undrawn facilities of over £900 million. This position will be enhanced further as deferred consideration is received. Net proceeds will be used to repay debt where appropriate or held as cash balances pending redeployment; and\n&nb...