Herbert Smith is advising Rothschild as financial adviser and sponsor on Liberty International's proposed demerger of Capital & Counties. Under the proposals, the company will divide its £6.1 billion UK property portfolio into two listed companies.
Liberty International will remain a listed real estate investment trust (REIT), retaining the £4.4 billion of shopping centres, including Lakeside in Essex. The business will be renamed Capital Shopping Centres.
Capital & Counties will own Liberty International’s £1.7 billion of London properties, including Covent Garden and Earls Court and Olympia.
The demerger is being implemented through a court-approved reduction and repayment of capital to Liberty International shareholders, effected by a transfer of the demerged assets to a newco, Capital & Counties Properties PLC. Both companies will maintain a secondary listing on the Johannesburg Stock Exchange in South Africa. A Liberty International meeting will be held in April to approve the transaction, with the reduction and demerger expected to complete in May.
The Herbert Smith team was led by corporate partner Charles Howarth, assisted by Graeme Baldwin, Sally Britten, Lucy Murray, Alex Sharples and Julia Morgan. Alex Bafi led the US securities advice, assisted by Carolyn Jew and Jeffery Hendrickson.
Liberty International was advised by Linklaters.
Notes to editors
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