CAPE TOWN – GrowthPoint Properties, the South African real estate investment trust (Reit) 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 & Regional shares, and an injection of capital to support the company’s strategy through a subscription for new Capital & Regional shares.
Capital & Regional is a large British manager of property assets – mainly shopping centres – for funds in which it has a significant stake. 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.