LONDON (dpa-AFX) - Capital & Counties Properties Plc. (CAPC.L) said Thursday that it is considering a demerger, which would result in two separately-listed businesses based around its prime central London estates, each with its own distinct investment prospects: Covent Garden, independently valued at over 2.5 billion pounds at 31 December 2017, to be launched as an independent, prime central London retail-focused REIT, led by Ian Hawksworth; a London development company centred around the Earls Court masterplan, which represents one of the most important large scale strategic opportunity areas in central London, led by Gary Yardley.
Capco's share of property interests at Earls Court was independently valued at 759 million pounds at 31 December 2017.
It is currently expected that a demerger, if pursued, would be formalised by the end of this year.
Ian Hawksworth, Chief Executive of Capco, said, 'Capco has achieved significant growth since listing, driving value creation from its two prime central London estates, both of which have positive long-term growth prospects. Underpinned by a strong balance sheet, Capco is well-positioned to support the current capital requirements of both of its prime assets.'
As a consequence of the Board's decision to consider a demerger, Ian Durant has informed the Board that, whilst he is fully supportive of the Board's decision to consider a demerger, in light of his eight-year tenure as Chairman and external commitments, he believes it would be appropriate to put in place his successor to lead the Board through this process. Ian has therefore notified the Board of his intention to resign as Chairman.
The Board has decided to appoint Henry Staunton, the current Senior Independent Director, as Chairman with effect from 5 June 2018 and the Board looks forward to Henry chairing the Company through the possible demerger process, working closely with the management team.
Copyright RTT News/dpa-AFX