To view the PDF file, sign up for a MySharenet subscription.

CAPITAL & COUNTIES PROPERTIES PLC - Capco announces sale of the Empress State Building for 250 million

Release Date: 26/03/2018 17:35
Code(s): CCO     PDF:  
Wrap Text
Capco announces sale of the Empress State Building for £250 million

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 (“Capco”)

26 March 2018

Capco announces sale of the Empress State Building for £250 million

Capital & Counties Properties PLC (“Capco”) today announces that it has exchanged and completed
on the sale of the Empress State Building (“ESB”) for total cash consideration of £250 million.

ESB has been sold to The Mayor’s Office for Policing and Crime (“MOPAC”); the long-term occupier of
the building under a lease due to expire in June 2019. ESB is a 451,000 square foot (NIA), 31 storey,
office building located in Earls Court. The consented Earls Court Masterplan is one of the most
important mixed-use development opportunities in central London and is based on retention of ESB’s
current structure.

The disposal enables Capco to realise significant cash proceeds which will be used for general
corporate purposes including investment in Capco’s central London estates as well as to take
advantage of opportunities as they arise.

The disposal has resulted in a reduction in Capco’s pro forma LTV as at 31 December 2017 from 21
per cent to 15 per cent.

Ian Hawksworth, Chief Executive of Capco, commented:

“We are pleased to announce the sale of the Empress State Building in line with our strategy of
realising value at Earls Court over time. The sale enables Capco, as a strategic long-term investor in
London, to support The Mayor’s Office for Policing and Crime in achieving its objectives and to
continue our strong working relationship with the GLA.”

Description and principal terms of the disposal

The disposal has been effected by way of a sale of the entire issued share capital of Empress Holdings
Limited and its subsidiaries (“Empress Holdings Group”) which holds the freehold interest in ESB, which
was independently valued at £220.0 million at 31 December 2017. Empress Holdings Group generated
net rental income of £16.6 million for the year ended 31 December 2017.

The transaction is expected to result in net cash proceeds of approximately £248.5 million. The terms
of the disposal provide for Capco to be able to retain certain adjacent land interests in exchange for
fulfilling specified conditions in the future. In the event these conditions are met a further £10 million will
be paid to Capco.

                                                   -ENDS-
Enquiries

Capital & Counties Properties PLC:
Ian Hawksworth                             Chief Executive                    +44 (0)20 3214 9188
Situl Jobanputra                           Chief Financial Officer            +44 (0)20 3214 9183
Sarah Corbett                              Head of Investor Relations         +44 (0)20 3214 9165

Media enquiries:
UK: Tulchan                                Susanna Voyle                      +44 (0)20 7353 4200
SA: Instinctif                             Frederic Cornet                    +27 (0)11 447 3030


JSE 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.
Capco's landmark London estates at Covent Garden and Earls Court were valued at £3.5 billion as at
31 December 2017 (Group share). The company is listed on the London Stock Exchange and the
Johannesburg Stock Exchange.

www.capitalandcounties.com

Date: 26/03/2018 05:35:00 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.

Share This Story