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CCO - Capital & Counties Properties PLC - Update on negotiations with London

Release Date: 16/04/2012 08:00
Code(s): JSE CCO
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CCO - Capital & Counties Properties PLC - Update on negotiations with London Borough of Hammersmith & Fulham 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") UPDATE ON NEGOTIATIONS WITH LONDON BOROUGH OF HAMMERSMITH & FULHAM Capital and Counties Properties PLC ("Capco") notes the publication by the London Borough of Hammersmith & Fulham ("LBHF") of its Cabinet report regarding its land holdings in the Earls Court & West Kensington Opportunity Area, in advance of its Cabinet meeting on 23 April 2012. The report includes details of the process that the Council has undertaken in considering the potential inclusion of the West Kensington and Gibbs Green estates in the wider regeneration of the area, and a summary of the draft terms and conditions of a potential Conditional Land Sale Agreement ("CLSA") based on the current status of the negotiations between LBHF and Capco. Under the draft CLSA, Capco would be entitled to acquire the Council`s 22 acres of land in the Opportunity Area for a total cash consideration of GBP105 million, plus reprovision (as part of a future development) of the 760 homes currently on the estates, which reflects the prevailing residential property pricing on that part of the Opportunity Area. The cash consideration would be payable as follows: in addition to the GBP15 million paid in July 2011 at time of entering into the Exclusivity Agreement with LBHF, Capco would initially acquire the 11 Farm Lane and Gibbs Green School sites for GBP15 million, and have the option exercisable until 2017 to acquire LBHF`s remaining land in a series of installments totaling GBP75 million. The draft CLSA further details the basis on which a development may be taken forward. At this stage, no transaction has been agreed between the parties and there is no certainty of a transaction being concluded. A further announcement will be made if appropriate. Gary Yardley, Investment Director of Capco, commented: "We welcome the publication of this report on the CLSA. It shows good progress is being made in moving towards an agreement on the inclusion of the Council`s land in the Earls Court development, which we have always believed would be of enormous benefit to London, the two Boroughs and the local community." Sponsor: Merrill Lynch SA (Pty) Limited 14 April 2012 Capital & Counties Properties PLC Ian Hawksworth, Chief Executive Tel: + 44 (0) 20 3214 9188 Gary Yardley, Investment Director Soumen Das, Finance Director For financial media enquires please contact: Hudson Sandler (UK) Tel: +44 (0) 20 7796 4133 Michael Sandler Mobile: +44 (0) 7836 672975 College Hill (South Africa) Tel: +27 11 447 3030 Morne Reinders Mobile: +27 (82) 815 1844
For general media enquiries please contact: Chris Rumfitt, Edelman Mobile: +44 (0) 7967 226646 About Capital & Counties Properties PLC (Capco): CAPITAL & COUNTIES PROPERTIES PLC is one of the largest companies that specialises in central London real estate and is a constituent of the FTSE-250 Index. CAPITAL & COUNTIES PROPERTIES PLC holds 3.3 million square feet of assets valued at GBP1.6 billion (as at 31 December 2011) in three landmark London estates: Covent Garden, which has assets valued at GBP808 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 GBP574 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 GBP241 million. The company is listed on the London Stock Exchange and the JSE, Johannesburg. Date: 16/04/2012 08:00:03 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.

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