Shaftesbury, Capco discuss merger to create London-focused REIT

Shaftesbury, Capco discuss merger to create London-focused REIT

Bloomberg: Shaftesbury Plc and Capital & Counties Properties Plc are in advanced talks to create a real estate group with assets in some of London’s hottest spots, including Covent Garden and Chinatown.

Norway’s sovereign wealth fund, a major investor in both companies, signaled its support for the all-stock deal, terms of which remain under discussion, the companies said. Shaftesbury would own 53% and Ian Hawksworth, chief executive officer of Capco, would continue in the same role at the combined real estate investment trust, which could be worth about 3.6 billion pounds ($4.5 billion) based on current market values.