Capital & Counties is moving towards a sale of its Earls Court holdings.
Earlier in the year, Capco announced its intention to demerge its Covent Garden and Earls Court interests. Covent Garden will be launched as a central London focused REIT. At the time, Capco also confirmed that there had been a broad range of interest in Earls Court but that there was no certainty of a sale being completed.
Since then, they say, preparations for the demerger have been substantially finalised. In addition, there has been progress with parties interested in acquiring the Earls Court business, including, say Capco, in relation to due diligence and commercial terms. They say indicative pricing continues to represent a range of discounts to the balance sheet value. In assessing interest from potential buyers, the Board continues to focus on value and deliverability.
Capco say their Board has determined to continue to work with selected parties towards achieving a sale. The Board believes that separation of the two businesses is in shareholders’ interests and it is expected that demerger documentation will be published by the end of October 2019 if a sale of Earls Court is not progressed satisfactorily.