West End London landlords Shaftesbury and Capital & Counties, known as Capco, have completed an all-share merger to form a new combined property group called Shaftesbury Capital.

The new group has a portfolio valued at 4.9 billion pounds, with 2.9 million square feet of lettable space located in some of the most iconic parts of London’s West End, primarily focused on Covent Garden, including Seven Dials, the Opera Quarter and Coliseum, as well as Carnaby including Soho and Chinatown.

The merger was announced in June last year, agreeing that Shaftesbury shareholders own 53 percent of the combined group, while Capco shareholders take control of 47 percent.

Shaftesbury Capital will be led by Capco’s boss Ian Hawksworth as chief executive with Shaftesbury’s chair Jonathan Nicholls as non-executive chairman, and Chris Ward, who was chief financial officer of Shaftesbury PLC, has been named as the chief operating officer of the combined group.

Shaftesbury Capital to offer “best of both” approach to operations following merger

Image: Capco; Covent Garden Christmas celebrations.

Commenting on the competition, Hawksworth, said in a statement: “We are delighted to complete the merger, bringing together two highly complementary portfolios to create the leading central London mixed-use REIT, Shaftesbury Capital PLC.

“We look ahead with confidence, with an experienced and talented team, to deliver long-term economic and social value for stakeholders and contribute to the success of the West End.”

The merger the group adds will bring together the asset management skills of two creative teams with experienced leadership taking a “best of both” approach to operations to deliver sustained long-term returns through growth in income, values and earnings with a progressive dividend.

This will allow Shaftesbury Capital to place customers at the heart of its business, the group added, targeting best-in-class service, providing differentiated destinations, curating an offering of complementary brands and enhancing the public realm to foster vibrant and thriving places.

The move will also create a “stronger operational platform of scale and efficiency,” including 12 million pounds of pre-tax recurring cost synergies on an annual run-rate basis from the end of the second-year post-completion and maintain a strong balance sheet with access to “significant liquidity”.