IAN Hawksworth, CEO of Capital & Counties, the UK-focused property group spun off from Liberty International in May last year, says the euro-zone debt crisis has not affected the company.

In an interview with Business Day yesterday, Mr Hawksworth, who is visiting SA to give an update on the group, said international investors — mainly from Europe, North America and Asia — continued to pour new capital in real estate in central London because “these investors realise that this market still holds value”.

“Global sovereign funds, international developers realise that Capital & Counties has a good portfolio in the West End of London with prime assets and that we can also deliver scale and growth in our portfolio. We are also starting to see domestic UK developers getting active as they see opportunities in the real estate market,” Mr Hawksworth said.

He said South African investors’ shareholding in Capital & Counties had decreased substantially from 40% when the group was still part of the Liberty Group to 20% since it listed as a separate company both in London and Johannesburg.

“I think the decline in South African shareholding had to do more with most South African funds’ interest in income rather than total returns, which is what we offer investors. There was also lack of understanding of the company after its demerger from Liberty.”

After listing separately Capital & Counties shareholding changed drastically, with European investors replacing South African investors who sold out prior to the listing, Mr Hawksworth said. Global Rock — an international investor based in London — is now the largest shareholder with 18%, SA’s Coronation Fund Managers owns 8%, while Sir Donald Gordon family owns 13%.

“After the listing there was a rebalancing by South African institutional investors, who were looking for income (instead of) total return and we were seen as a small player,” Mr Hawksworth said.

“Those who decided to stay are probably happy with the returns we have delivered.”

He said the group was on the radar screens of global investors due to its strong portfolio as it was a dominant player in central London.

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Source: Business Day