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Sale of Venues
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
7 April 2017
CAPITAL & COUNTIES PROPERTIES PLC (“Capco”)
Capco announces sale of Venues for £296 million
Capco today announces that it has exchanged and completed on the sale of Venues, its exhibition
business, comprising Olympia London together with certain related property assets, for a total gross
cash consideration of £296 million (the “Disposal”). Venues has been sold to a consortium of German
institutional investors, which includes Bayerische Versorgungskammer (Germany’s largest manager
of public pension schemes investing through a fund managed by Universal-Investment) as the single
largest shareholder, the Versicherungskammer Bayern Group (Germany’s largest public insurer) and
DFI European Value Add Fund (together the “Consortium”). The Consortium is advised by investment
firm Deutsche Finance International and Yoo Capital, as UK co-investor. Capco has been advised by
Rothschild and CBRE on this transaction.
Highlights
- The Disposal is for a total gross consideration of £296 million (before net debt and working
capital adjustments)
- After repayment of debt, working capital adjustments and transaction-related costs, net
proceeds are approximately £229 million, in line with the net asset value of Venues
- The Disposal provides an opportunity for Capco to realise significant cash proceeds which will
be used initially to repay bank debt and subsequent to this, for deployment in Capco’s core
central London estates, as well as to take advantage of opportunities as they arise
- Following the Disposal, Capco’s pro-forma LTV as at 31 December 2016 decreases from 23
per cent to 17 per cent
Ian Hawksworth, Chief Executive of Capco, commented:
“We are pleased to announce the sale of Olympia London to the Consortium. Following the successful
transition of shows from the former Earls Court exhibition centres and our strategic investment in
recent years, Olympia London is now established as the preferred central London venue for premium
shows. Now that the period of transition is complete, it is the right time for Capco to exit its ownership
of the venue. It has been our privilege to be part of the rich history of this historic venue, and we wish
the business and management team great success under its new ownership.
The completion of this transaction delivers value for our shareholders and will position Capco to
concentrate effort and resources on our two exceptional central London estates at Covent Garden
and Earls Court, as well as further enhance our financial flexibility to take advantage of opportunities
as they arise.”
1. Description of Venues
Venues is an exhibition business, comprising Olympia London together with certain related property
assets.
Capco acquired full control of the Earls Court & Olympia London venues and operating business in
2009. Earls Court and Olympia London were run as one business until the permanent closure of Earls
Court at the end of 2014. In the run-up to the closure of Earls Court, Capco successfully transitioned
over 80 per cent of shows from Earls Court to Olympia London. In addition, Capco invested £30
million in Olympia London establishing it as the preferred central London venue for premium shows.
Venues generated an EBITDA of £19.0 million and profit after tax of £11.8 million for the year ended
31 December 2016. Venues had gross assets of £313.0 million as at 31 December 2016.
2. Principal terms and conditions of the Disposal
The Disposal has been effected by way of a sale of the entire issued share capital of Olympia
Exhibitions Group Limited.
The gross consideration payable in cash to Capco is £296 million, and after repayment of £50 million
debt, working capital adjustments and transaction-related costs, net proceeds are approximately £229
million.
-ENDS-
Enquiries
Capital & Counties Properties PLC:
Ian Hawksworth Chief Executive +44 (0)20 3214 9188
Gary Yardley Managing Director & Chief Investment Officer +44 (0)20 3214 9189
Situl Jobanputra Chief Financial Officer +44 (0)20 3214 9183
Sarah Corbett Investor Relations Manager +44 (0)20 3214 9165
Media enquiries:
Sarah Hagan Director of Communications & Marketing +44 (0)20 3214 9185
UK: Tulchan Susanna Voyle +44 (0)20 7353 4200
SA: Instinctif Frederic Cornet +27 (0)11 447 3030
Sponsor:
Merrill Lynch South Africa (Pty) Limited
Notes to Editors
About Capital & Counties Properties PLC (Capco):
Capital & Counties Properties PLC 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.
1
Capco's landmark London estates are valued at £3.4 billion (as at 31 December 2016): Covent
Garden, which has assets valued at £2.3 billion including the historic Market Building; and Earls Court
Properties including the Empress State Building of £1.1 billion. The company is listed on the London
Stock Exchange and the Johannesburg Stock Exchange.
1. Group share, excludes Venues
www.capitalandcounties.com
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