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West End landlords Shaftesbury and Capital & Counties in merger talks

West End landlords Shaftesbury and Capital & Counties in talks over a £3.5billion merger, potentially announced in weeks

West End landlords Shaftesbury and Capital & Counties are in talks over a £3.5billion merger, which could be announced within weeks.

A merger of the two FTSE250 firms would create a real estate giant owning huge chunks of some of central London’s most popular haunts.

It would combine Capital & Counties’ Covent Garden estate with Shaftesbury’s portfolio of 600 buildings in areas such as Chinatown, Soho and Carnaby Street.

A fine line: A merger of the two FTSE250 firms would create a property giant owning huge chunks of some of central London’s most popular haunts

There has been speculation the companies could merge since Capital & Counties took a 26 percent stake in its larger rival. Shaftesbury is valued at £2.2bn, while Capital & Counties is valued at £1.4bn.

When asked last month if a merger was planned, Shaftesbury CEO Brian Bickell described the two companies as “good neighbors”.

He told The Mail on Sunday: “It’s a bit like living in a semi-detached house. You may get along well with your neighbors, but you really don’t want to live with them.’

Both firms have seen the value of their properties plummet during the pandemic as shops closed and London commuters were forced to work from home.

But business is now recovering. The talks were first reported by Sky News.

Shaftesbury declined to comment. Capital & Counties has been contacted for comment.

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West End landlords Shaftesbury and Capital & Counties in merger talks

Source link West End landlords Shaftesbury and Capital & Counties in merger talks

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