Capital rules out Grantchester bid

Posted On Monday, 16 September 2002 02:00 Published by
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Capital & Regional, the property company, is believed to have ruled out mounting a knock-out bid for Grantchester, the retail warehouse specialist
Capital & Regional, the property company, is believed to have ruled out mounting a knock-out bid for Grantchester, the retail warehouse specialist.

Capital is thought to have been interested in looking at Grantchester possibly through the Junction, its property investment joint venture with a subsidiary of Aviva, the insurer. However, there are no current plans to put together an offer.

Grantchester was put into play after a management buy-out offer to take it private backed by West Coast Capital. Last week, Hammerson, a rival office and retail property group, launched an unsolicited offer for Grantchester.

Such aggressive moves are rare in the property sector, which has been more notable for the procession of smaller quoted companies being taken private in management-led deals.

Grantchester focuses on a single product, retail warehousing, which is the best performing property type this year. Its portfolio is regularly in the top quartile of the Investment Property Databank performance measurement index.

The flurry of interest in Grantchester has highlighted the attractions of commercial property to pension funds when equities are performing poorly. Some quoted property companies have been trading at a discount to net asset value.

Capital & Regional declined to comment last night.

Financial Times


Publisher: Financial Times
Source: Financial Times

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