Update on negotiations with LBHF

RNS Number : 3541B

Capital & Counties Properties Plc

16 April 2012

 



PRESS RELEASE

14 April 2012

UPDATE ON NEGOTIATIONS WITH LONDON BOROUGH OF

HAMMERSMITH & FULHAM

Capital and Counties Properties PLC ("Capco") notes the publication by the London Borough of Hammersmith & Fulham ("LBHF") of its Cabinet report regarding its land holdings in the Earls Court & West Kensington Opportunity Area, in advance of its Cabinet meeting on 23 April 2012. The report includes details of the process that the Council has undertaken in considering the potential inclusion of the West Kensington and Gibbs Green estates in the wider regeneration of the area, and a summary of the draft terms and conditions of a potential Conditional Land Sale Agreement ("CLSA") based on the current status of the negotiations between LBHF and Capco.

Under the draft CLSA, Capco would be entitled to acquire the Council's 22 acres of land in the Opportunity Area for a total cash consideration of £105 million, plus reprovision (as part of a future development) of the 760 homes currently on the estates, which reflects the prevailing residential property pricing on that part of the Opportunity Area. The cash consideration would be payable as follows: in addition to the £15 million paid in July 2011 at time of entering into the Exclusivity Agreement with LBHF, Capco would initially acquire the 11 Farm Lane and Gibbs Green School sites for £15 million, and have the option exercisable until 2017 to acquire LBHF's remaining land in a series of installments totaling £75 million. The draft CLSA further details the basis on which a development may be taken forward.

At this stage, no transaction has been agreed between the parties and there is no certainty of a transaction being concluded. A further announcement will be made if appropriate.

Gary Yardley, Investment Director of Capco, commented:

"We welcome the publication of this report on the CLSA. It shows good progress is being made in moving towards an agreement on the inclusion of the Council's land in the Earls Court development, which we have always believed would be of enormous benefit to London, the two Boroughs and the local community."

-ENDS-

Capital & Counties Properties PLC
Ian Hawksworth, Chief Executive Gary Yardley, Investment Director	Tel:          + 44 (0) 20 3214 9188
Soumen Das, Finance Director

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About Capital & Counties Properties PLC (Capco):

CAPITAL & COUNTIES PROPERTIES PLC is one of the largest companies that specialises in central London real estate and is a constituent of the FTSE-250 Index. CAPITAL & COUNTIES PROPERTIES PLC holds 3.3 million square feet of assets valued at £1.6 billion (as at 31 December 2011) in three landmark London estates: Covent Garden, which has assets valued at £808 million, including the historic Market Building; Earls Court & Olympia Group and 50% of the Empress State building in Earls Court amounting to aggregate property assets of £574 million; and the Great Capital Partnership, a joint venture with Great Portland Estates, which holds prime West End properties of which Capco's share is £241 million. The company is listed on the London Stock Exchange and the JSE, Johannesburg.

 

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