Capital & Counties has received £105 million of deferred cash consideration from the Earls Court sale.
This amount represents a scheduled payment following the sale which was announced in November 2019. The final payment of £15 million is due to be received in November 2021.
This further enhances the company’s financial flexibility and liquidity with the proceeds allocated to reduce borrowings under the Covent Garden revolving credit facility. Based on Capital & Counties’ net debt and the independent valuation of its property portfolio as at the 30th of June 2020, and taking into account the proceeds of the sale of the Wellington Block (£76.5 million), payments in respect of Shaftesbury shares acquired in August and November 2020 (£153 million in total) and the proceeds of the exchangeable bond issue announced on the 19th of November 2020 (£275 million), on a pro forma basis, Capital & Counties’ net debt would be approximately £700 million which represents a net debt to gross assets ratio of 25 per cent (30th of June 2020: 26 per cent).
On the same basis, net debt for Covent Garden would be approximately £475 million and the loan to value ratio would be 23 per cent (30 June 2020: 36 per cent)