Manchester’s retail Trafford Centre in bid talks

John Whittaker, Chairman of Peel, said: “CSC has 13 prime UK shopping centres with considerable untapped growth opportunities. I believe the existing NAV of CSC does not reflect the latent value that can be unlocked through, amongst other things, improving rental income, increasing square footage and adding leisure, catering and focus on customer ambience. The re-pricing of this transaction reflects my strong belief in the growth yet to come at CSC. By combining the extensive experience of the Peel and CSC teams in managing UK regional shopping centres we believe CSC will be well placed to realise this potential. “The Trafford Centre is an outstanding retail and leisure destination in its own right. Its mix of retail, entertainment, theatre, leisure and sporting facilities has driven significant year-on-year growth in footfall which has led to substantial value out-performance. This successful formula applied to CSC’s portfolio will provide a unique platform for growth for the benefit of all CSC shareholders.” CSC is attempting to fend off Simon’s 425 pence per share offer for its business, a bid that came after CSC launched its move to buy the Trafford Center. Simon’s 5.1 percent stake in CSC would be diluted by the Peel deal, which it opposes. Simon has said it would not buy CSC if the Trafford deal went through. After Simon urged CSC shareholders to oppose the deal at a meeting scheduled for December 20, CSC moved the date to January 26, saying it needed more time to inform shareholders. Simon’s third attempt to acquire CSC comes as real estate investors have been showing a renewed interest in British malls, which they expect to rise in value as the local economy stages a tentative recovery. The full Peel Group’s statement can be seen at this link.