Peel supports terms of Trafford Centre deal

Posted On Tuesday, 14 December 2010 02:00 Published by
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Capital Shopping Centres has issued a statement on behalf of the Peel Group, in response to Simon Property Group letter proposing changes to the terms of the proposed acquisition.

UK-and JSE-listed retail property focused group Capital Shopping Centres on Monday issued a statement on behalf of the Peel Group, in response to Simon Property Group Inc's letter to CSC proposing changes to the terms of the proposed acquisition of the Trafford Centre Group.

"Peel Group is aware of the letter from Simon Property Group Inc to Capital Shopping Centres Group plc, proposing fundamental changes to CSC's agreed Trafford Centre transaction with Peel.

"Peel Group remains committed to the agreed transaction with CSC, subject to approval of CSC shareholders on 20th December 2010. Peel has no intention of selling the Trafford Centre for cash and this has never been an aim of the group, in spite of the fact that Peel has been advised a cash sale would achieve a higher price and nor does Peel intend entering into such a discussion," it said in a statement.

Peel added that the objective is to increase and diversify its exposure to the UK shopping centre market via a long-term investment in CSC.

The transaction will bring to CSC the value of John Whittaker's extensive experience in the retail and leisure property sectors and, through the addition of the Trafford Centre, will create an unrivalled portfolio of UK regional shopping centre assets, it said.

"Peel believes the combination of the Trafford Centre within the CSC portfolio, together with an improved capital structure and a strong and supportive shareholder, will significantly improve the growth prospects for CSC for the next cycle and for the long term.

"Peel looks forward to supporting the CSC board, for the benefit of all shareholders, to further enhance CSC's position as a leading UK shopping centre investor," Peel said.

UK-based Capital has said the proposed acquisition of The Trafford Centre would deliver improved total returns for its shareholders.

The deal also conforms to its strategy of focusing on the UK's largest and most successful shopping centre destinations, reflecting the continuing trend for trade to concentrate into fewer retail locations, it said.

Source: I-Net Bridge

Publisher: I-Net Bridge
Source: I-Net Bridge

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