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EXTRA: Capital & Counties Ready To Cash In On Olympia London Site

Fri, 7th Apr 2017 13:16


LONDON (Alliance News) - Capital & Counties Properties PLC said Friday it is in advanced talks over the sale of the Olympia London exhibition centre, with a potential GBP293.0 million price tag.

Capital & Counties shares were trading 1.2% higher on Friday at 311.60 pence.

The FTSE 250-listed property developer said it is in "advanced discussions" over the sale of its Venues business, which comprises the exhibition centre and related property assets. The centre is located in West Kensington, London.

Capital & Counties did not disclose an exact sale price, but said it is in line with its valuation at the end of 2016. In its latest annual report, Olympia London was valued at GBP293.0 million, a 1% like-for-like decline from the prior year.

Despite that broadly flat valuation, Capital & Counties is set to realise significant gains from the site, having initially taken a 50% interest in the centre in 2007 before acquiring full control in 2010.

From 2010 to 2013, Capital & Counties refurbished the Olympia site in preparation for moving its Venues business there, from its Earls Court Exhibition Centre properties. At the end of 2013, the Venues business was valued at GBP161.0 million, before rising by over 80% in value over the next two years as Olympia became the main exhibition site.

This is not the first time the GBP2.65 billion property developer has considered cashing in on its investment, having said in 2015 that a strategic review of the centre was underway.

However, Bloomberg reported on Wednesday that a potential buyer has appeared in the form of Chinese conglomerate HNA Group Co, in partnership with US-based Bugsby Property LLC.

Citing people with knowledge of the matter, Bloomberg said the two companies are willing to offer more than GBP300.0 million for the Venues business. However, the news organisation also said there are competing bids from equity investor Yoo Capital and an unnamed German company.

https://www.bloomberg.com/news/articles/2017-04-05/hna-venture-said-to-bid-for-capco-s-375-million-london-venue

By Adam Clark; adamclark@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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