Madison International buys 3% stake in Capital & Counties Properties

Madison International Realty has bought a 3.12% stake in UK property investor Capital & Counties Properties (CapCo).

Madison acquired the shares in CapCo on behalf of clients and said it now holds 26.5m shares in the £1.85bn (€2.1bn) company.

CapCo shares in London last closed at 213.30p.

Capco, which specialises in central London real estate, manages two landmark London estates at Covent Garden and Earls Court.

Earlier today Capco announced that based on an independent valuation of the underlying property interests held by Earls Court Partnership Limited (ECPL), Capco’s property interests in ECPL is now £412m, compared with the valuation as at 31 December 2018 of £461m.

On a pro forma basis, this would reduce Capco’s 31 December 2018 European Public Real Estate Association net-asset value (NAV) of 326p by approximately 6p per share, Capco said.

Ronald Dickerman, Madison International Realty founder and president, said: “We have acquired this holding in CapCo at a material discount to the most recently reported net asset value.

“We believe the current share price materially undervalues the potential of the company and the underlying properties it holds.”

Madison specialises in acquiring partial ownership stakes, joint venture, direct limited partner and listed property shares in prime properties and portfolios in primary markets in the US, UK and Western Europe.

Dickerman said the stake acquisition in CapCo fits well with Madison’s differentiated strategy of undertaking investments in listed property companies owning prime quality portfolios that “we believe are trading at outsized discounts to net asset value”.

Related images

  • CapCo Earls Cour

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2543

    Asset class: Search of an Asset manager / Advisor managing / Advising a risk-based equity derivatives overlay program.
    Asset region: Global Developed Markets Equities, Global Emerging Markets Equities, Swiss Equities.
    Size: CHF 700-2100 million.
    Closing date: 2019-06-17.

  • QN-2544

    Asset class: Transitional Real Estate Debt.
    Asset region: North America (USA/Canada).
    Size: $50-100mn.
    Closing date: 2019-06-17.

  • QN-2546

    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

Begin Your Search Now