Hogan Lovells Advises Shaftesbury on £156M Placing
12 March 2014
12 March 2014 - Hogan Lovells has advised long-standing client Shaftesbury PLC on the placing of 25,250,000 new ordinary shares for £156.6 million, announced on Thursday 6 March 2014.
The Placing Shares were placed at a price of 620 pence each, raising gross proceeds of approximately £156.6 million. The Placing Shares represent approximately 9.99% of Shaftesbury's issued ordinary share capital prior to the Placing.
On 27 February 2014, Shaftesbury exchanged contracts to purchase a long leasehold interest in the commercial elements of Newport Sandringham on the eastern boundary of its existing extensive holdings in Chinatown. The purchase price was £54.4 million (excluding acquisition costs).
The proceeds from the Placing will be used to finance the acquisition of Newport Sandringham and other properties within the Company's core "Villages" in London's West End, and to provide capital to fund ongoing redevelopment/ reconfiguration schemes.
Shaftesbury's strategy focuses on the acquisition of buildings which have, or have the potential for, predominately retail and leisure uses and which offer good prospects for growth in rental and capital values through reconfiguration, refurbishment and active management.
In March 2011, Hogan Lovells also advised Shaftesbury on a successful £102 million share placing to help fund acquisitions in its core West End market. Since then, the Company has extended its portfolio through targeted acquisitions totaling £108.3 million, and invested an additional £53.1 million in improvement schemes across its portfolio.
The Hogan Lovells team advising Shaftesbury was led by London corporate partner Nigel Read, supported by senior associate Fergus Gallagher and associate Ben Coleman; US Securities partner Peter Kohl and associate Jaime Huertas; and tax partner Karen Hughes and senior associate Fiona Bantock.
Commenting on the placing, Nigel said:
"We have an excellent and long-standing relationship with Shaftesbury. This placing, following on from the March 2011 placing on which we also advised, puts Shaftesbury in a very strong position to take advantage of further strategic opportunities as they arise in its core Villages in London's West End."