Capital & Counties and Shaftesbury have completed their £3.5bn all-share merger to form Shaftesbury Capital. This new company will dominate the Soho and Covent Garden areas of central London. Shaftesbury Capital’s portfolio is focused on Covent Garden, Seven Dials, the Opera Quarter, Carnaby Street, Soho, and Chinatown. The portfolio has been independently valued at £4.9bn
Ian Hawksworth, chief executive of the merged group, 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.”
Shaftesbury Capital’s assets offer 1.7m sq ft of hospitality, leisure and retail space, around 600,000 sq ft of office space and more than 800 apartments.
The annual gross income of the merged group is £178m, while the portfolio’s estimated rental value is £227m a year.
Net debt stands at £1.5bn, and the group has a loan-to-value ratio of 31%.
Trading in Capco’s shares under the new name saw initial interest but prices have dropped of over the last week in line with general trends.