GrowthPoint makes cash offer to acquire shopping centre landlord Capital & Regional. Photo: Pixabay

CAPE TOWN – GrowthPoint Properties is in talks to acquire a majority stake in UK regional shopping centre landlord Capital & Regional.

Capital & Regional said in a statement on Wednesday that the talks involved GrowthPoint making an offer in cash for Capital & Counties shares, and an injection of capital to support the company’s strategy through a subscription for new Capital & Regional shares.

Capital & Regional owns shopping centres in Blackburn, Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood Green in the UK. 

Capital & Regional chief executive Lawrence Hutchings said he was limited by what he could say about the potential deal at this stage, but he was “pleased” that GrowthPoint had “expressed interest”, as it was a “confirmation of our strategy.”

GrowthPoint’s main assets are its 450 commercial properties in South Africa valued at R78.3 billion.

GrowthPoint yesterday reported growth in distributable income of 5.3 percent to R6.4 billion, marginally ahead of guidance. 

The dividend per share was up 4.6 percent to 218.1 cents per share. 

Its share price fell 4.26 percent to R22.50 in early trade on Wednesday.

BUSINESS REPORT