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CSC to buy Trafford Centre in £1.6bn deal

Published:  24 November, 2010

 

Capital Shopping Centres has confirmed that it is to buy the Trafford Centre, Manchester, in a deal valuing the mall at £1.6bn.

 

CSC, recently floated following the break-up of Liberty International, expects to pay £750m in shares for the Trafford Centre with a further £75m cash contribution to Peel. It will also assume £800m of existing debt secured on the centre.

CSC is planning a share placing to finance the purchase, which would leave it with a £350m war chest for further acquisitions and developments. The deal would leave Peel, owned by Isle of Man-based entrepreneur John Whittaker, owning 19.9 per cent of CSC. He would then join the CSC board as a non-executive director and deputy chairman.

The Trafford Centre, located to the west of Manchester, is one of the UK's most successful retail and leisure destinations attracting 35m customer visits annually, with 1.9m sq ft of retail, catering and leisure space, including the 200,000-sq ft homeware and leisure extension at Barton Square.

After the acquisition, CSC would own 14 UK shopping centres, including ten of the top 25 and four of the top six out-of-town centres.