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Published
May 24, 2018
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Covent Garden owner Capco considers demerger

Published
May 24, 2018

Capco, the property developer that owns the freehold of Covent Garden, has announced it is considering a demerger after reviewing the “changing profile and scale” of the central London shopping district.


Photo: Covent Garden Facebook


The demerger would result in two separately-listed businesses based around the company’s Covent Garden and Earls Court estates. If pursued, the £2.5 billion Covent Garden will be launched as an independent, prime central London retail-focused REIT, led by Ian Hawksworth.

Meanwhile, Earls Court, where Capco has proposed to build a new luxury residential, retail and dining quarter, will become the focus of the second business.

Capco bought the famous Covent Garden Market and its surrounding areas in 2006 and has since then transformed it into a world class shopping district. Armani, Charlotte Tilbury and Mulberry are some of the luxury brands that have opened recently in the area.

In addition to the possible demerger, Capco announced that Ian Durant has notified his intention to resign as chairman. Henry Staunton, who currently serves as senior independent director, has been appointed to succeed Durant as chairman from 5 June 2018.

“After eight years as chairman, I leave the company in a strong position, with two of the best central London estates, a strong balance sheet and an experienced and professional management team,” said Ian Durant.

“I believe now is the right time for the board to consider the separation of our two high quality businesses, and consider it appropriate that this initiative is chaired by someone able to commit time to its preparation and continue with part of the business after implementation. Henry, who has considerable board experience and a deep knowledge of Capco is the natural successor to lead Capco through its next stage of growth.”

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