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Sun November 01 2020

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New owner for Trafford Centre

25 Nov 10 Manchester’s Trafford Centre is being bought by Capital Shopping Centres from Peel Group in a £1.6bn deal.

The Trafford Centre is one of the UK's biggest retail and leisure developments, with 35m customer visits a year and 1.9 million sq. ft. of retail, catering and leisure space.

The agreed deal involves an equity purchase price of £747.6m for The Trafford Centre and a further £77m in respect of a cash contribution by Peel, in return for the issue of consideration shares and convertible bonds by Capital Shopping Centres (CSC) to Peel. AS well as becoming a major shareholder, Peel also gets a seat on the board at CSC for ist chairman John Whittaker.

On the basis of CSC's share price, the deal implies a price for The Trafford Centre of approximately £1.6bn, taking into account The Trafford Centre Group's net debt of £798m. This is 3% less than an external valuation of £1.65bn.

CSC will now own 14 UK shopping centres, including 10 of the top 25 and four of the top six out-of-town shopping centres. Its properties include the Gateshead Metrocentre and Lakeside Thurrock.

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MPU

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