LEADING LONDON LANDLORDS PLOT £3.5BN MEGA-MERGER

TWO of London’s biggest landlords are discussing a multi-billion-pound tie-up that would send shockwaves through the city’s property market.

FTSE 250 firms Shaftesbury and Capital & Counties (Capco) are in ‘advanced discussions’ over a £3.5bn merger that would unite some of the most valuable areas of the West End.

Shaftesbury owns large parts of Chinatown, Carnaby Street and upmarket Fitzrovia north of Oxford Street.

Capco’s portfolio includes Covent Garden market, pictured with chief executive Ian Hawksworth.

If the merger goes through, the combined firm will control 2.9m square feet of prime real estate in central London, including shops, restaurants, offices and housing.

Shaftesbury shareholders would own 53pc of the combined company, with Capco investors owning the remaining 47pc. The new firm would be headed by Hawksworth and Shaftesbury chairman Jonathan Nicholls.

It comes after Covid dented their share prices, with Shaftesbury’s worth a third less than three years ago while Capco’s stock has declined by 31pc. But the two firms are seeking to cash in on the rebound in trade.