Potential bidder for Capital & Regional pulls out of race

Praxis had previously expressed interest in buying the shopping centre owner, but in an update it said it has ‘no intention’ of making an offer.

Alex Daniel
Tuesday 10 September 2024 06:17 EDT
Capital & Regional owns The Mall in Wood Green, north London (Alamy/PA)
Capital & Regional owns The Mall in Wood Green, north London (Alamy/PA)

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Shopping centre owner Capital & Regional’s share price has plummeted after a company which had been touted as a potential buyer said it is not interested.

Praxis Group, also a property firm, said it has “no intention to make an offer” for Capital & Regional, which runs shopping centres in Edinburgh, Hemel Hempstead, Ilford, Maidstone, Walthamstow and Wood Green.

Praxis had said in July it was interested in an acquisition, and it had been given a September 12 deadline to make a formal offer alongside NewRiver REIT, which had also expressed interest.

Capital & Regional’s shares were down 7.5% on Tuesday after the statement from Praxis.

The shopping centre owner has been looking for a buyer since May, following a period of growing momentum in the number of consumers visiting its properties.

Footfall at Capital & Regional-owned shopping centres rose 1.5% last year to 44.5 million visits, it said.

The figure represented roughly 87% of the numbers visiting its properties before pandemic-induced lockdowns throughout 2020 and 2021.

Capital & Regional’s shopping centres include The Exchange in Ilford, Marlowes in Hemel Hempstead, Gyle in Edinburgh and The Mall in Wood Green, north London.

Praxis said it could revisit the deal under certain conditions, including another party such as NewRiver making a formal offer.

As well as retail spaces similar to Capital & Regional’s estate, Praxis invests in properties including office blocks and industrial sites.

Last year, it bought the Brindleyplace campus in Birmingham city centre for £125 million in a joint deal with private credit firm Veld Capital.

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