“The applications will also confirm that the existing domestic listing of Liberty International will not be prejudiced as a result of the demerger,” he said.
Capital Shopping Centres would retain Liberty’s domestic listing but under a new name. Both Capital Shopping Centres and Capital & Counties would have premium listings on the official list and be traded on the London Stock Exchange.
This comes after Liberty International, which has a significant South African shareholding, announced the reorganisation of the two businesses by way of a demerger into two separate companies, aimed at giving shareholders an option to diversify their investments. Shareholders would now have the option to invest in the shopping centre portfolio, housed in Capital Shopping Centres, or the nonretail portfolio, housed in Capital & Counties.
Fischel said the two businesses would be separately listed on the London Stock Exchange and have a secondary listing on the JSE. The group had received all other material third-party consent, including from lenders. Fischel said due to Liberty’s changing approach to investment in real estate, both in the equity markets and property market, the businesses required greater focus and more active management.
Occupancy levels at Capital Shopping Centres were restored to pre-fourth-quarter 2008 levels. “We will be focusing on relettings this year for short-term leases at higher rents. There is scope for yield compression to drive capital values.”
He said à125m was identified for active management opportunities, coupled with three major extensions at the feasibility stage for Capital Shopping Centres.
Liberty International would retain its UK regional shopping centre assets, along with its US assets and Indian investments, and is to be renamed Capital Shopping Centres group. Capital & Counties would comprise Liberty International’s interest in Covent Garden, Earls Court and Olympia, including the Empress State Building, and the Great Capital Partnership, as well as its Chinese fund investment.
Patrick Burgess, the chairman of Liberty International, would be the chairman of Capital Shopping Centres and Fischel would be the CEO. Ian Durant becomes chairman of Capital & Counties and Ian Hawksworth becomes CEO.
