London landlords Shaftesbury and Capital & Counties (Capco) have received approval for their merger, resulting in the creation of a new property giant named Shaftesbury Capital. The merger, which has been approved by shareholders from both companies, is projected to be finalized on March 6. The Competition and Markets Authority (CMA) has also given its approval after conducting an investigation into the potential impact on competition. The combined portfolio of Shaftesbury Capital is valued at approximately £5 billion and includes prominent properties in London’s West End, such as Covent Garden, Soho, Carnaby Street, Shaftesbury, and Chinatown. Roughly one-third of their estate is dedicated to retail ventures. The companies have not provided further commentary on the merger, but Capco is expected to release its annual results in the near future.
Talk of the merger began prior to the pandemic when Capco acquired a 25% stake in Shaftesbury. The newly-formed entity, Shaftesbury Capital, is anticipated to commence trading on March 7 with an estimated stock market value of £2.7 billion. The majority ownership of 53% will be held by Shaftesbury shareholders, while Capco investors will hold the remaining stake. The CEO of Capco, Ian Hawksworth, will lead the newly-formed group, alongside Jonathan Nicholls, who has served as Shaftesbury’s chairman for the past six years, assuming the role of chairman. Brian Bickell, Shaftesbury’s current CEO, will be retiring.
Both Capco and Shaftesbury have recently reported encouraging trading conditions, indicating a recovery from the impact of the Covid-19 pandemic.
Useful links:
– Shaftesbury’s official website
– Capco’s official website
