Wrap Text
CCO - Capital & Counties Properties PLC - Conditional agreement with Kwok Family
Interests to Acquire 50% Stake in Seagrave Road for GBP65.6m
Capital & Counties Properties PLC
(Incorporated and registered in the United Kingdom and Wales with registration
Number 07145041 and registered in South Africa as an external company with
Registration Number 2010/003387/10)
JSE code: CCO ISIN: GB00B62G9D36
CAPITAL & COUNTIES PROPERTIES PLC (the "Company")
PRESS RELEASE
19 December 2011
Conditional agreement with Kwok Family Interests to Acquire 50% Stake in
Seagrave Road for GBP65.6m
Capital & Counties Properties PLC ("Capco") is pleased to announce that its
wholly owned subsidiary, Capital & Counties Limited, has entered into a
conditional agreement with entities in which certain members of the Kwok family
are interested (the "Kwok Family Interests") to form a 50:50 joint venture in
respect of Capco`s interests in and around Seagrave Road for a price that values
these interests at GBP131.2 million. Interests of the Kwok family are major
shareholders of Sun Hung Kai Properties Limited, one of the largest and highly
reputable real estate companies listed on the Hong Kong Stock Exchange.
Ian Hawksworth, Chief Executive of Capco said:
"We are delighted to have attracted such an experienced development partner
whose investment represents a major vote of confidence in the London property
market in general, and in this scheme in particular. This joint venture will
enable us to participate in the next stage of the Seagrave Road scheme which
will begin the transformation of the area, creating hundreds of new homes and
jobs."
Under the terms of the agreement, Capco and the Kwok Family Interests will each
own 50 per cent. of a joint venture through which Capco`s 7.5 acre site at
Seagrave Road (the "Seagrave Road Site") and other adjacent assets will be held.
The agreement is subject to the satisfaction of certain conditions, including
the receipt of a satisfactory planning consent immune from challenge. The
Seagrave Road Site and adjacent assets were valued at GBP116.2 million as at 30
June 2011. On completion of the transaction Capco will receive GBP65.6 million
in cash from the Kwok Family Interests. Any further acquisitions that are
included in the joint venture or any disposals prior to closing will result in
an adjustment to the consideration as appropriate. The proceeds will be used for
Capco`s general corporate purposes, which may include funding Capco`s 50 per
cent share of future capital commitments in the development phase of the scheme.
A detailed planning application for the Seagrave Road Site was submitted in June
2011. The proposed scheme, which covers approximately one million square feet
and will replace the existing car park, provides for the delivery of a high
quality, mixed tenure residential neighbourhood comprising 808 new homes and a
range of amenities. The site is set within the wider Earls Court & West
Kensington Opportunity Area (ECOA).
Earls Court is an Olympic venue and hence the earliest that development could
begin on the Seagrave Road Site would be autumn 2012. The Seagrave Road Site is
currently used as a car park for the Earls Court Exhibition centre. Capco`s
interests in and around Seagrave Road generated EBITDA of GBP0.5 million in the
year to 31 December 2010.
The total development costs of the scheme (excluding land) are estimated to be
in the region of GBP300 million. It is currently envisaged that the peak capital
requirement for the joint venture (excluding land) would be limited to circa
GBP100 million by splitting construction into four phases over five years and
recycling capital between phases within the project.
-Ends-
Capital & Counties Properties PLC Tel: + 44 (0)20 3214 9150
Ian Hawksworth, Chief Executive
Soumen Das, Finance Director
Gary Yardley, Investment Director
For financial media enquires please contact:
Hudson Sandler (UK) Tel: +44 (0) 20 7796 4133
Michael Sandler/Wendy Baker
College Hill (South Africa) Tel: +27 11 447 3030
Nicholas Williams
For general media enquiries please contact:
Chris Rumfitt, Edelman Tel: +44 (0) 7967 226646
Sponsor:
Merrill Lynch SA (Pty) Limited
A conference call for analysts and investors will be held at 9am today.
Notes to Editors:
About Capital & Counties Properties PLC (Capco):
Capco is one of the largest investment and development property companies that
specialises in central London real estate and is a constituent of the FTSE-250
Index. CAPCO holds 3.2 million square feet of assets valued at GBP1.5 billion
(as at 30 June 2011) in three landmark London estates: Covent Garden, which has
assets valued at GBP780 million, including the historic Market Building; Earls
Court & Olympia Group and 50% of the Empress State building in Earls Court
amounting to aggregate property assets of GBP488 million; and the Great Capital
Partnership, a joint venture with Great Portland Estates, which holds
prime West End properties of which Capco`s share is GBP240 million. The company
is listed on the London Stock Exchange and the JSE, Johannesburg.
About The Kwok Family Interests:
Interests of the Kwok family are major shareholders of Sun Hung Kai Properties
Limited ("SHKP"), one of the largest real estate companies listed on the Hong
Kong Stock Exchange. SHKP is widely recognised as a premium brand developer of
residential projects, offices, shopping centres and hotels. Among its renowned
developments are the International Finance Centre in Central, Hong Kong, the
International Commerce Centre which is presently the tallest building in Hong
Kong and the Shanghai IFC in Pudong, Shanghai.
- About the proposed Seagrave Road development:
The proposed plans for the Seagrave Road site replace the existing car park with
a 973,238 sq ft high quality, mixed use scheme comprising 808 new homes, 200 of
which are affordable, ranging from townhouses to apartments, and centred around
a 81m long garden square. The plans have been designed by John McAslan +
Partners and form part of Sir Terry Farrell`s `Four Villages and a High Street`
Masterplan for the area creating an integrated community of new homes, green
spaces and local amenities on the site.
Date: 19/12/2011 09:00:12 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
