Capital & Regional completes 51% stake sale to Growthpoint

Capital & Regional has completed the sale of a 51% stake in the company to Johannesburg-listed real estate investment trust Growthpoint Properties for around £150.4m. Growthpoint first acquired 219.8m existing shares in the UK real estate firm at 33p per share, for a total of £72.5m. The firm then signed up for 311.5m new Capital & Regional shares at 25p each. This raised gross proceeds of approximately £77.9m before costs for Capital & Regional. Hugh Scott-Barrett, chairman of Capital & Regional, 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 the 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.” Francois Marais, chairman of Growthpoint, added: “Growthpoint is fully supportive of Capital & Regional’s ‘needs-based’ retail strategy and of the management of Capital & Regional. Growthpoint fully intends to support the growth of Capital & Regional’s portfolio, both as to quality and profitability.” READ MORE: Why Growthpoint is circling Capital & Regional To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette