Shaftesbury finalises Capco merger

6th March 2023 | Jack Oliver

The merger between two of London’s largest real estate investment trusts (REITs) has been finalised.

Shaftesbury and Capital & Counties (Capco) announced in July 2022 that they had agreed to an all-share merger to create Shaftesbury Capital, creating a joint portfolio valued at £4.9bn.

The move was given the all-clear by the Competition and Markets Authority in February.

The two firms estimated the deal would see an annualised gross rental income of around £166m and an estimated rental value of approximately £218m (as of March 2022).

Under the terms of the proposed merger, Shaftesbury’s shareholders control approximately 53% of the combined business, while Capco’s shareholders control the remaining 47%.

The combined estate measures some 1.7 million sq ft of hospitality, leisure, and retail space, as well as 0.6 million sq ft of offices and residential units.

Ian Hawksworth, Shaftesbury chief executive, said: “Today we are delighted to complete the merger, bringing together two highly complementary portfolios to create the leading central London mixed-use REIT, Shaftesbury Capital. We look ahead with confidence, with an experienced and talented team, to deliver long-term economic and social value for stakeholders and contribute to the success of the West End.”


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