Growthpoint in for Capital & Regional – UK shopping centre owner Capital & Regional is in discussions to sell a majority stake in the company to Growthpoint Properties.
The sale to Growthpoint, the largest South African REIT, would be through a combination of a partial offer in cash for Capital & Regional shares and an injection of capital to support the company’s strategy through a subscription for new Capital & Regional shares.
The company is now considered to be in an “offer period” and Growthpoint has until 9 October 2019 to either announce a firm intention to make an offer for Capital & Regional or announce that it does not intend to make an offer.
Shares in Capital & Regional were up almost 7% in early trading following the announcement.
The announcement came on the same day that Capital & Regional posted its half-year results to 30 June 2019. The company suffered another fall in net asset value (NAV) for the first half of the year following the ongoing retailer administrations.
NAV per share for the six months to the end of June fell to 51p, a 22.7% fall year-on-year. Rental income was also down, falling to £25.2m for the period compared to £26m in June 2018. Earnings per share were down from 2.15p to 2.04p, and net debt rose to £413.1m, bringing its loan to value ratio to 52%.
CAL : Growthpoint in for Capital & Regional
Click here to subscribe for free equity research on investment trusts, funds and listed companies.