Capco and Shaftesbury, two prominent West End landlords in London, are reportedly in advanced talks about merging their operations. This potential merger could create a London super-landlord valued at approximately £3.5 billion. Capco, also known as Capital & Counties Properties, has significant investments in Covent Garden, while Shaftesbury owns properties in Seven Dials, Carnaby, and Chinatown.

According to sources, the merger would be an all-share deal, but neither Capco nor Shaftesbury has provided any official comments on the matter. An announcement regarding the merger talks might be expected in the coming weeks.

This speculation about a potential merger first appeared in May 2020 when Capco purchased a 26% stake in Shaftesbury for £436 million. The move coincided with property tycoon Samuel Tak Lee selling his stake in the company. The COVID-19 pandemic has posed significant challenges for landlords, with store closures, low footfall due to restrictions, and a decline in tourism affecting rental income. Consequently, tenants faced difficulties in paying rent, leading to the closure of several stores.

Despite these challenges, major shopping destinations, such as those owned by Capco and Shaftesbury, have experienced a rebound in new tenant signings. Shaftesbury recently reported that its vacancy rate has dropped below 5% for the first time since the pandemic began. Capco’s CEO has also expressed optimism, citing increased leasing demand as a driving force behind rising property values.

If the merger between Capco and Shaftesbury moves forward, it would result in the creation of a formidable entity in the London property market. The combined company could leverage their prime locations and solidify their positions as major landlords in the West End. However, until an official announcement is made, the exact details and implications of the potential merger remain uncertain.

For more information on Capco and Shaftesbury, visit their official websites:
– Capco: https://www.capitalandcounties.com/
– Shaftesbury: https://www.shaftesbury.co.uk/