We've advised Growthpoint Properties Limited (Growthpoint), the largest South African Real Estate Investment Trust (REIT) listed on the Johannesburg Stock Exchange (JSE), on its substantial investment in Capital & Regional plc (C&R).
Capital & Regional is a UK focused retail property REIT, specialising in shopping centres. It has an impressive portfolio of in-town shopping centres valued at approximately £764m. Capital & Regional owns seven shopping centres in Blackburn, Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood Green.
The investment comprised a recommended partial offer to acquire nearly 220 million Capital & Regional shares (representing approximately 30.2 per cent of C & R’s shares) for approximately £72.5m and a subscription for approximately 311 million new C&R shares, raising c. £77.9m. Following completion of the transaction in December 2019, Growthpoint (or its nominees) holds approximately 51.2 per cent of C&R.
Francois Marais, Chairman of Growthpoint, commented:
“The transaction is a further important step in Growthpoint’s internationalisation strategy. It establishes an important bridgehead for Growthpoint into the UK property market. Growthpoint appreciates the sound support and advice received from the Simmons & Simmons team throughout the process”.
Corporate partners Ed Baker and Patrick Graves led the Simmons & Simmons team supported by (among others) Mark Curtis, Thomas Burgoo, Tom Fricke, Ece Aygar, Abigail Boyce, Ciara McMahon, Ed Robson (Corporate), Martin Shah, Mark Watterson (Tax), John Sayers, Imran Iqbal-Mian (Banking), John Kelsey, James Curry (Real Estate), Tair Hussain (Incentives), Charles Bankes and Ian Hastings (Competition).
On advising Growthpoint, corporate partners Ed Baker and Patrick Graves commented:
“The Simmons team is thoroughly delighted to have been part of Growthpoint’s further international expansion. This deal is the second piece of work undertaken by Simmons for this client, following Growthpoint’s c. €200m share subscription in Globalworth Real Estate Investments in 2016. We look forward to supporting Growthpoint as it continues to deliver on its ambitious strategy.”
The transaction also utilised the services of Simmons Wavelength, the world’s first regulated firm of legal engineers.