Johannesburg - UK real estate investment trust Liberty International, which is to separate into two new businesses, announced on Friday that the outstanding approvals in respect of the South African listing status of both businesses have been received and are satisfactory to the Liberty International board.

Liberty International announced earlier this week that it intends to separate into two businesses - Capital Shopping Centres and Capital & Counties.

It said the separation will be effected by way of a demerger of Liberty International's central London focused property investment and development division, to a new company called Capital & Counties Properties PLC (Capital & Counties), from the rest of the Liberty International group comprising predominantly the UK shopping centres business.

Liberty International, which will retain its UK regional shopping centre assets, along with its US assets and Indian investments, will be renamed Capital Shopping Centres group PLC (Capital Shopping centres).

"The Demerger will create distinct entities with separate strategic, capital and economic characteristics and management teams: Capital Shopping Centres, a prime regional shopping centre focused UK Reit, aiming to deliver strong long-term returns through income and capital growth; and Capital & Counties, a central London focused, non-Reit, property company focusing on total return opportunities in London's real estate market," the group, which is also listed in South Africa, said.

According to a prospectus issued on Friday, the secondary listing of Capital & Counties Properties PLC on the JSE will be, for South African exchange control purposes, an inward listing and the listing of the Capital & Counties Ordinary Shares on the JSE will be treated as foreign assets in the hands of South African resident Qualifying Shareholders with the following consequences:

- South African resident investors who are individuals, corporate entities or trusts may continue to hold, sell or buy Capital & Counties ordinary shares on the Capital & Counties SA register without restriction; and

- South African resident institutional shareholders may only hold Capital & Counties ordinary shares as part of their foreign portfolio allowances. South African resident institutional investors who are qualifying shareholders and who receive their Capital & Counties ordinary shares as a direct consequence of the demerger, which receipt results in their foreign portfolio allowances being exceeded, will be, in terms of the approval received from the exchange control department of the South African Reserve Bank, granted 24 months to realign their portfolios following their receipt of the Capital & Counties ordinary shares.

"Capital & Counties properties PLC will continue to engage in discussions with the South African Reserve Bank and the South African National Treasury regarding the status of its secondary listing on the JSE with a view to obtaining a directive from the minister of finance in South Africa classifying the listing of Capital & Counties properties PLC on the JSE as a domestic listing.

"However, there can be no guarantee that such a directive will be obtained," Liberty International said.

It is expected that the name of Liberty International will change to Capital Shopping Centres Group PLC at the close of business on Friday May 7 2010. On Monday May 10 2010, the Liberty International ordinary shares will begin trading on the LSE and the JSE under the new name Capital Shopping Centres group PLC.

- I-Net Bridge