Capital & Counties Properties said on Friday that it has signed an agreement with five US institutional investors for a private placement of £150 mln (€191 mln) in senior unsecured notes to be issued by its Capco Covent Garden unit, the holding company for Capco’s £1.3 bn Covent Garden assets.
Capital & Counties Properties said on Friday that it has signed an agreement with five US institutional investors for a private placement of £150 mln (€191 mln) in senior unsecured notes to be issued by its Capco Covent Garden unit, the holding company for Capco’s £1.3 bn Covent Garden assets.
The issue consists of two tranches: £75 mln 3.63% Senior Notes due in 2024 and £75 mln 3.68% senior Notes due in 2026. Closing and funding of the transaction will take place in December.
London- and Johannesburg-listed Capco said it plans to use the proceeds to repay bank debt and for general corporate purposes.
The Royal Bank of Scotland plc acted as sole placement agent for the transaction.
Soumen Das, finance director of Capco, commented: 'The transaction enhances the unsecured platform at Covent Garden which was established earlier this year, extending the debt maturity profile and the already strong liquidity position through a new source of long-term funding at attractive, fixed-rate coupons.'
Capital & Counties Properties is an investor-developer specialising in central London real estate. Capco holds 3.7 million sq ft of assets valued at £2.6 bn in two landmark London estates: Covent Garden, which has assets valued at £1.3 bn including the historic Market Building, and Earls Court Properties including the Empress State Building together with the Venues business amounting to aggregate property assets of £1.2 bn.
