Capital & Regional (LON: CAL) have updated shareholders on Monday about their share subscription being completed to finalize a deal with Growthpoint (JSE: GRT).
Capital & Regional plc is a large British manager of property assets – mainly shopping centres – for funds in which it has a significant stake.
Shares in Capital & Regional currently trade at 28p (+0.085%). 9/12/19 11:26BST.
In October, the firm announced that it would be looking to formalize a deal with Growthpoint.
The firm said that the first part of the deal would be or Growthpoint to acquire 219.8 million existing shares in Capital & Regional, which the firm has said has been completed.
The second part was for Growthpoint to subscribe for 311.5 million new Capital & Regional shares, at a price of 25p each to raise £77.9 million before costs for the company.
Johannesburg-listed real estate investment trust Growthpoint said it will invest around £150.4 million for a 51% interest in the UK real estate firm Capital & Regional.
The completion of this two phase deal means that the offer between the two firms is now wholly unconditional.
Capital & Regional Chair Hugh Scott-Barrett said: “The successful completion of this transaction is transformational for the long term growth of Capital & Regional. It provides us with the resources and support to continue the roll out of our community centre asset management strategy, while at the same time allowing us to further reduce the company’s leverage.
“The team at Growthpoint share our conviction that retail centres which focus on daily ‘needs’, rather than the ‘wants’, of the local communities they serve and which have a central role in their local economies, will continue to play an important part in the evolving retail landscape.”
Growthpoint Chair Francois Marais added: “Growthpoint fully intends to support the growth of Capital & Regional’s portfolio both as to quality and profitability.
“Growthpoint looks forward to a productive and profitable ongoing engagement with the management of Capital & Regional to assist Capital & Regional in achieving its strategic objectives.”
The industry has been busy, as rival Intu saw their share price crash after expectations for revenue income have fallen for financial 2019. Intu said that new rent in the nine months to 30 September 2019 hit £19 million, falling from £32 million during the same period last year.
Additionally, NewRiver Reit PLC saw their shares spike in November, after the firm announced the purchase of a Northern Ireland retail park for £40 million.