(Alliance News) - Capital & Counties Properties PLC and Shaftesbury PLC said on Monday they were on track to wrap up their merger in the first quarter.
The deal between Capco and Shaftesbury is subject to clearance from UK Competition & Markets Authority and other outstanding conditions.
Shaftesbury is a London-focused real estate investment trust. Capco is a property firm with investments in London's West End, Covent Garden and Shaftesbury.
In separate statements, the two companies said the deadline for phase one review by the CMA was February 22.
In June last year, the two property groups agreed final terms for their all-share merger to create a London-focused property investor with a combined portfolio value of GBP5.0 billion.
"Preparations continue on bringing together two exceptional West End property portfolios to form Shaftesbury Capital PLC," Capco said.
In a trading statement for 2022, Capco said its investment in Shaftesbury shares was valued at GBP357 million based on a share price of 368 pence per share as at December 31, from GP596 million based on a share price of 615p at December 31, 2021.
The London and Johannesburg-listed property firm said 71 new leases were made in 2022, worth GBP10 million of contracted income.
The independent property valuation of Covent Garden was unchanged over the year at GBP1.7 billion year-on-year.
Group net debt of GBP622 million, up 3.8%from GBP599 million.
Capco declared an interim dividend of 1.7p, bringing total payout for the year to 2.5p, higher than 1.5p in the prior year.
"Trading conditions across the Covent Garden estate have been positive, in particular a successful Christmas trading period with like-for-like customer sales in aggregate exceeding pre-pandemic levels," Capco said.
Separately, Shaftesbury declared a 2.7p interim dividend, as agreed under Capco merger deal.
As at December 31, net debt was GBP826.6 million, up from GBP804.6 million at September 30, representing a loan-to-value ratio of 26.5%, up from 25.2% over the quarter largely due to the valuation decrease.
Shaftesbury's wholly owned property valuation was GBP3.1 billion on the quarter, down 2.7% from GBP3.19 billion.
Occupier turnover was up 42% in 2022, compared to 2021, and was up 6% on 2019, boosted by buoyant trading conditions over the festive period, Shaftesbury said.
"The sustained recovery in footfall and trading previously reported continued into the important Christmas and New Year period," said the real estate investment trust located on London West End.
Shaftesbury shares were down 1.8% to 385.40 pence per share on Monday in London, while Capco shares rose 2.9% to 83.75p per share and up 3.7% at ZAR24.44 each in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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