Takeover approaches for Capco are predicted this year by adviser Peel Hunt.
It believes a concentrated trophy portfolio, such as the £2.6bn Covent Garden estate, could attract foreign capital, particularly with continuing weakness in retail property share prices.
Peel Hunt added in its note, which gives its top M&A and special situations stocks for 2020, that Capco’s diverse shareholder base, compared with those of other REITs such as Shaftesbury, may aid in attracting bid interest – especially if its NAV discount does not close further following the completion of the sale of its Earls Court scheme to APG and Delancey last month.
Peel Hunt said the “need for further consolidation in the real estate sector is widely acknowledged. The smaller companies, in particular, lack operational efficiencies, while their discounted share ratings restrict their ability to grow.
“A number of companies could find themselves subject to bids from private and listed counterparties in 2020.”
To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
