Capital & Counties Properties Plc Capco announces sale of Venues for £296 million (9835B)
April 07 2017 - 12:01PM
UK Regulatory
TIDMCAPC
RNS Number : 9835B
Capital & Counties Properties Plc
07 April 2017
7 April 2017
CAPITAL & COUNTIES PROPERTIES PLC ("Capco")
Capco announces sale of Venues for GBP296 million
Capco today announces that it has exchanged and completed on the
sale of Venues, its exhibition business, comprising Olympia London
together with certain related property assets, for a total gross
cash consideration of GBP296 million (the "Disposal"). Venues has
been sold to a consortium of German institutional investors, which
includes Bayerische Versorgungskammer (Germany's largest manager of
public pension schemes investing through a fund managed by
Universal-Investment) as the single largest shareholder, the
Versicherungskammer Bayern Group (Germany's largest public insurer)
and DFI European Value Add Fund (together the "Consortium"). The
Consortium is advised by investment firm Deutsche Finance
International and Yoo Capital, as UK co-investor. Capco has been
advised by Rothschild and CBRE on this transaction.
Highlights
-- The Disposal is for a total gross consideration of GBP296
million (before net debt and working capital adjustments)
-- After repayment of debt, working capital adjustments and
transaction-related costs, net proceeds are approximately GBP229
million, in line with the net asset value of Venues
-- The Disposal provides an opportunity for Capco to realise
significant cash proceeds which will be used initially to repay
bank debt and subsequent to this, for deployment in Capco's core
central London estates, as well as to take advantage of
opportunities as they arise
-- Following the Disposal, Capco's pro-forma LTV as at 31
December 2016 decreases from 23 per cent to 17 per cent
Ian Hawksworth, Chief Executive of Capco, commented:
"We are pleased to announce the sale of Olympia London to the
Consortium. Following the successful transition of shows from the
former Earls Court exhibition centres and our strategic investment
in recent years, Olympia London is now established as the preferred
central London venue for premium shows. Now that the period of
transition is complete, it is the right time for Capco to exit its
ownership of the venue. It has been our privilege to be part of the
rich history of this historic venue, and we wish the business and
management team great success under its new ownership.
The completion of this transaction delivers value for our
shareholders and will position Capco to concentrate effort and
resources on our two exceptional central London estates at Covent
Garden and Earls Court, as well as further enhance our financial
flexibility to take advantage of opportunities as they arise."
1. Description of Venues
Venues is an exhibition business, comprising Olympia London
together with certain related property assets.
Capco acquired full control of the Earls Court & Olympia
London venues and operating business in 2009. Earls Court and
Olympia London were run as one business until the permanent closure
of Earls Court at the end of 2014. In the run-up to the closure of
Earls Court, Capco successfully transitioned over 80 per cent of
shows from Earls Court to Olympia London. In addition, Capco
invested GBP30 million in Olympia London establishing it as the
preferred central London venue for premium shows.
Venues generated an EBITDA of GBP19.0 million and profit after
tax of GBP11.8 million for the year ended 31 December 2016. Venues
had gross assets of GBP313.0 million as at 31 December 2016.
2. Principal terms and conditions of the Disposal
The Disposal has been effected by way of a sale of the entire
issued share capital of Olympia Exhibitions Group Limited.
The gross consideration payable in cash to Capco is GBP296
million, and after repayment of GBP50 million debt, working capital
adjustments and transaction-related costs, net proceeds are
approximately GBP229 million.
-ENDS-
Enquiries
Capital & Counties Properties PLC:
Ian Hawksworth Chief Executive +44 (0)20 3214 9188
Managing Director & Chief
Gary Yardley Investment Officer +44 (0)20 3214 9189
Situl Jobanputra Chief Financial Officer +44 (0)20 3214 9183
Sarah Corbett Investor Relations Manager +44 (0)20 3214 9165
Media enquiries:
Director of Communications
Sarah Hagan & Marketing +44 (0)20 3214 9185
UK: Tulchan Susanna Voyle +44 (0)20 7353 4200
SA: Instinctif Frederic Cornet +27 (0)11 447 3030
Notes to Editors
About Capital & Counties Properties PLC (Capco):
Capital & Counties Properties PLC is one of the largest
investment and development property companies that specialises in
central London real estate and is a constituent of the FTSE-250
Index. Capco's landmark London estates are valued at GBP3.4
billion(1) (as at 31 December 2016): Covent Garden, which has
assets valued at GBP2.3 billion including the historic Market
Building; and Earls Court Properties including the Empress State
Building of GBP1.1 billion. The company is listed on the London
Stock Exchange and the Johannesburg Stock Exchange.
1. Group share, excludes Venues
www.capitalandcounties.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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