On 25 July 2019, Capital & Counties Properties Plc announced its intention to launch Covent Garden as a central London focused REIT through its demerger from Capco. The company 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, preparations for the demerger and documentation have been substantially finalised. In addition, there has been progress with parties interested in acquiring the Earls Court business, including in relation to due diligence and commercial terms, and certain relevant stakeholders have indicated that selected potential buyers would represent acceptable counter parties. 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 deliverables.
Accordingly, the 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.
Further announcements will be made in due course.