THABANG MOKOPANELE

Property Editor

An improving economy, a resilient retail environment and a recovering property investment market were benefiting Capital Shopping Centres, the retail-focused company that was spun out of the de-merger of UK-based property company Liberty International into two separately listed entities.

The company, which has a South African shareholding of between 45% and 50% and is 14,8% owned by Liberty International founder Donald Gordon and his family, yesterday reported a 7,7% growth in property valuations, increasing net asset value per share to 368p for the half year to June.

This was the first set of results for Capital after being reorganised as a separate business from Capital & Counties Properties, which on Tuesday also released a solid set of results. Previously, Capital Shopping Centres and Capital & Counties were divisions within the listed Liberty International. Both are now separately listed.

CEO David Fischel said domestic institutions had been active and the company had specifically noted “genuine” interest from major international institutional investors in large scale, high-quality UK regional shopping centres.

Mr Fischel said the company continued to have a “good” relationship with its South African shareholders. He said the company’s shareholder register had not changed since the de-merger.

Evan Jankelowitz, an analyst with Stanlib property franchise, said investors looking for long-term earnings growth would do well to invest in the company but short-term investors could be disappointed. “The company has good quality assets and an experienced management … the long term prospects look good,” Mr Jankelowitz said.

Capital Shopping Centres, which has become a specialist developer, owner and manager of regional shopping centres in the UK, owned 13 regional shopping centres valued at £4,9bn at the end of June. The company’s centres attracted 275-million customer visits and generated net rental income of £267m last year. The company recorded an overall profit of £291m, driven largely by a 7,7% rise in property valuations.

Mr Fischel said the group’s top priority remained increasing net rental income.

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Source: Business Day