| Mon 16 Apr 2012, 8:00 | | CCO - Capital & Counties Properties PLC - Update on negotiations with London |
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JSE CCO
CCO
CCO - Capital & Counties Properties PLC - Update on negotiations with London
Borough of Hammersmith & Fulham
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 (the "Company")
UPDATE ON NEGOTIATIONS WITH LONDON BOROUGH OF HAMMERSMITH & FULHAM
Capital and Counties Properties PLC ("Capco") notes the publication by the
London Borough of Hammersmith & Fulham ("LBHF") of its Cabinet report regarding
its land holdings in the Earls Court & West Kensington Opportunity Area, in
advance of its Cabinet meeting on 23 April 2012. The report includes details of
the process that the Council has undertaken in considering the potential
inclusion of the West Kensington and Gibbs Green estates in the wider
regeneration of the area, and a summary of the draft terms and conditions of a
potential Conditional Land Sale Agreement ("CLSA") based on the current status
of the negotiations between LBHF and Capco.
Under the draft CLSA, Capco would be entitled to acquire the Council`s 22 acres
of land in the Opportunity Area for a total cash consideration of GBP105
million, plus reprovision (as part of a future development) of the 760 homes
currently on the estates, which reflects the prevailing residential property
pricing on that part of the Opportunity Area. The cash consideration would be
payable as follows: in addition to the GBP15 million paid in July 2011 at time
of entering into the Exclusivity Agreement with LBHF, Capco would initially
acquire the 11 Farm Lane and Gibbs Green School sites for GBP15 million, and
have the option exercisable until 2017 to acquire LBHF`s remaining land in a
series of installments totaling GBP75 million. The draft CLSA further details
the basis on which a development may be taken forward.
At this stage, no transaction has been agreed between the parties and there is
no certainty of a transaction being concluded. A further announcement will be
made if appropriate.
Gary Yardley, Investment Director of Capco, commented:
"We welcome the publication of this report on the CLSA. It shows good progress
is being made in moving towards an agreement on the inclusion of the Council`s
land in the Earls Court development, which we have always believed would be of
enormous benefit to London, the two Boroughs and the local community."
Sponsor:
Merrill Lynch SA (Pty) Limited
14 April 2012
Capital & Counties Properties PLC
Ian Hawksworth, Chief Executive Tel: + 44 (0) 20 3214 9188
Gary Yardley, Investment Director
Soumen Das, Finance Director
For financial media enquires please contact:
Hudson Sandler (UK) Tel: +44 (0) 20 7796 4133
Michael Sandler Mobile: +44 (0) 7836 672975
College Hill (South Africa) Tel: +27 11 447 3030
Morne Reinders Mobile: +27 (82) 815 1844
For general media enquiries please contact:
Chris Rumfitt, Edelman Mobile: +44 (0) 7967 226646
About Capital & Counties Properties PLC (Capco):
CAPITAL & COUNTIES PROPERTIES PLC is one of the largest companies that
specialises in central London real estate and is a constituent of the FTSE-250
Index. CAPITAL & COUNTIES PROPERTIES PLC holds 3.3 million square feet of assets
valued at GBP1.6 billion (as at 31 December 2011) in three landmark London
estates: Covent Garden, which has assets valued at GBP808 million, including the
historic Market Building; Earls Court & Olympia Group and 50% of the Empress
State building in Earls Court amounting to aggregate property assets of GBP574
million; and the Great Capital Partnership, a joint venture with Great Portland
Estates, which holds prime West End properties of which Capco`s share is GBP241
million. The company is listed on the London Stock Exchange and the JSE,
Johannesburg.
Date: 16/04/2012 08:00:03 Produced by the JSE SENS Department.
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