West End landlords Shaftesbury and Capco eye £3.5bn merger
Two major London property firms are in talks about a £3.5bn merger to create an extensive real estate empire in London’s West End.
Capital & Counties Properties (Capco), which runs the Covent Garden estate, and Carnaby Street landlord Shaftesbury are mulling an all-share tie-up, Sky News first reported. The merger could be announced within weeks according to sources familiar with the matter.
Capco first signalled a major interest in Shaftesbury back in May 2020 when it snapped up a 26 per cent stake in the company owned by property tycoon Samuel Tak Lee for £436m.
The deal comes as London’s tourist hotspots emerge from a tough period during the Covid-19 pandemic. London landlords have been hit hard by the collapse of popular hospitality and retail outlets – including Topshop, Carluccio’s and Prezzo – amid successive lockdowns.
Shaftesbury raised £300m in November 2020 to see it through the pandemic period with Capco and major shareholder Norges Bank both offering financial backing.
Capco is likely to be advised by bankers at Rothschild, while Shaftesbury is being advised by Blackdown Partners and Evercore Partners according to Sky News.
Shaftesbury declined to comment. Capco has not yet responded to City PM’s request.