Property firm Capco buys HK tycoon’s stake in London rival Shaftesbury

Capital & Counties Properties has agreed to buy a 26.3% stake in London rival Shaftesbury from Hong Kong tycoon Samuel Tak Lee’s for 436 million pounds ($540.7 million), the real estate manager said on Monday.

Both Capco and Shaftesbury own large parts of the real estate in London’s West End central area. Capco is acquiring the stake from Veloqx, a trust fund set up by Tak Lee, for 540 pence per share, a discount of 13.9% to Shaftesbury’s closing share price on Friday.

Major British property deals have all but come to a standstill as the coronavirus outbreak has led to retailers and other business halting rental payments, and cast doubt on both current and future valuations of buildings and portfolios.

Capco shares rose 2.8% to 168 pence in early trade, while Shaftesbury, which rose as much as 3% on Friday, fell 0.5% after the deal was announced.

Capco said the deal, which is expected to be completed in two tranches, would be fully funded through its shopping and entertainment estate Covent Garden’s revolving credit facility of 705 million pounds.

“We consider the acquisition a shrewd move, utilising a strong balance sheet to capitalise on attractive valuation,” Liberum analysts said in a note.

In order to deploy cash towards the deal, Capco will not complete the share buy-back of 100 million pounds to shareholders, the FTSE-250 listed company said.

Rothschild & Co was the lead financial adviser and sponsor for Capco on the deal.

Separately, Shaftesbury said Tak Lee has withdrawn all legal proceedings against it over allegations and claims related to a 2017 share placement conducted by the company.

Reuters

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.