The 1990's | Capital Shopping Centres

Notwithstanding the prevailing gloom in the property market, the opening on 25 October of Lakeside, Thurrock, the group’s flagship centre, is a spectacular event. At £353 million, Lakeside represents around a third of overall property assets – the group remains determined to keep 100 per cent ownership.

Life insurance activities move centre stage as TransAtlantic contributes its 29 per cent Sun Life interest and a further £180 million in cash to Rockleigh Corporation, a joint venture with UAP, which successfully offers and takes 100 per cent ownership of Sun Life.
The property market is still dire and net asset value per share falls 18 per cent.

Full merger with Capital & Counties finally enables TransAtlantic to obtain a listing on the London Stock Exchange.
The shares begin to rally strongly from a low of 162p as the property market shows signs of recovery, although net asset value per share still drops 12 per cent to 274p.

After three years of decline, TransAtlantic’s UK property valuations stop falling and instead show a surplus of 7.6 per cent while Sun Life has an outstanding year growing new business volumes strongly and increasing its long-term business funds from £10.9 billion to £15.3 billion.
The share price increases 49 per cent over the year to 355p.

TransAtlantic splits its property activities into two parts with Capital Shopping Centres (CSC) created as a specialist shopping centre business.
The initial public offering of CSC on the London Stock Exchange raises £216 million reducing TransAtlantic’s interest to just below 75 per cent.
The head lease of The Harlequin, Watford, is acquired for £162 million in a dramatic resolution of a legal dispute.

Previous years’ negative comments about the UK life industry prove prophetic as TransAtlantic sells its Sun Life interest to UAP for £527 million, a £260 million profit on cost.
TransAtlantic repurchases 40 million TransAtlantic shares at 320p per share, a large discount to net assets.
MetroCentre, Gateshead, Europe’s largest shopping complex, is acquired for £324 million and contracts are exchanged for CSC’s development of Braehead, Glasgow.

TransAtlantic changes its name to Liberty International.
CSC shares rise by 69 per cent, the best performing property share on the London Stock Exchange and CSC is already the fourth largest UK property company by market capitalisation.
Liberty International net asset value continues its strong recovery to 445p per share and total shareholders’ funds pass £2 billion.

Massive revaluation surpluses on Lakeside, MetroCentre and The Harlequin, Watford, 19 per cent overall for CSC, drive powerful results as aggregate property assets pass the £2.5 billion mark.
Braehead construction advances for opening in 1999 with 85 per cent of projected rental income already committed.

Property assets surge through £3 billion with an overall increase of 12 per cent in market values in a year when the gross redemption yield on the 20 year UK gilt fell nearly 2 per cent to 4.45 per cent.
A site is acquired in Uxbridge, West London, for a £150 million shopping centre development while lettings at Braehead reach 96 per cent of income with a year still to go before opening.

Liberty Life’s interest in Liberty International is reduced from 74 per cent to around 30 per cent by way of a distribution in specie to Liberty Life shareholders with Liberty International obtaining a listing on the Johannesburg Stock Exchange.
Braehead opens and proves an immediate operational and financial success.
The group exits its Australian property activities.
A further 45 million Liberty International shares are repurchased at a big discount to net asset value, as property shares languish compared with high flying technology stocks.

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