Trocadero to get listing in Burford demerger

TOM STEVENSON

Deputy City Editor

The chequered history of one of London's busiest tourist destinations took another twist yesterday as the Trocadero confirmed it is to gain a stockmarket listing later this year. Shares in Burford Holdings, the property company that currently owns the site at Piccadilly Circus, jumped 7.5p to 127.5p after it announced the planned demerger.

Burford only acquired the Trocadero last September, picking the leisure and shopping centre up from receivers KPMG for pounds 94m, a snip compared to its estimated pounds 250m value at the top of the property boom, when it was owned by the leisure company Brent Walker and Power Corporation, the Irish property investor.

One of the most respected and entrepreneurial property companies, Burford surprised no one when it transformed the potential value of the tawdry, under-exploited site soon after the acquisition by teaming up with Japanese entertainment giant Sega to launch Europe's biggest indoor space-age theme park, SegaWorld.

The deal has transformed 120,000 sq ft of unlettable office space into what is expected by next summer to become a paradise for lovers of Star Trek, virtual reality games and stomach-churning rides. Although the Trocadero attracts more than 16 million visitors a year, until now few have actually spent anything there, giving the site enormous unrealised potential.

The first SegaWorld, in Yokohama on the outskirts of Tokyo, has been a huge success, despite occupying a much less favourable location than the Trocadero.

Burford plans to demerge the Trocadero by offering its shareholders a share in the leisure site for every Burford unit they already own. The new Troc shares will be listed on Aim, the new market for start-up and young companies, until it has the requisite trading record to allow it to move to the main market.

The demerger is the latest move by a company that has left its peers standing throughout the recession and since. From 1990, soon after it bailed out of property at the top of the market, its shares have quadrupled. This year, when most of the sector has been struggling, Burford's shares have jumped 38 per cent.

Part of the rationale behind the demerger is to capitalise on the high rating that Burford believes the Trocadero should attract.

According to Nigel Wray, Burford's chairman, companies with both the earnings streams that leisure businesses provide and the asset backing characteristic of property companies tend to be undervalued by the stockmarket.

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Retirement Coordinator - Financial Services

Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...

Recruitment Genius: Annuities / Pensions Administrator

Negotiable: Recruitment Genius: You will be the first point of contact for all...

Ashdown Group: HR, Payroll & Benefits Officer - Altrincham - up to £24,000.

£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...

Ashdown Group: Learning and Development Programme Manager

£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

The saffron censorship that governs India: Why national pride and religious sentiment trump freedom of expression

The saffron censorship that governs India

Zareer Masani reveals why national pride and religious sentiment trump freedom of expression
Prince Charles' 'black spider' letters to be published 'within weeks'

Prince Charles' 'black spider' letters to be published 'within weeks'

Supreme Court rules Dominic Grieve's ministerial veto was invalid
Distressed Zayn Malik fans are cutting themselves - how did fandom get so dark?

How did fandom get so dark?

Grief over Zayn Malik's exit from One Direction seemed amusing until stories of mass 'cutting' emerged. Experts tell Gillian Orr the distress is real, and the girls need support
The galaxy collisions that shed light on unseen parallel Universe

The cosmic collisions that have shed light on unseen parallel Universe

Dark matter study gives scientists insight into mystery of space
The Swedes are adding a gender-neutral pronoun to their dictionary

Swedes introduce gender-neutral pronoun

Why, asks Simon Usborne, must English still struggle awkwardly with the likes of 's/he' and 'they'?
Disney's mega money-making formula: 'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan

Disney's mega money-making formula

'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan
Lobster has gone mainstream with supermarket bargains for £10 or less - but is it any good?

Lobster has gone mainstream

Anthea Gerrie, raised on meaty specimens from the waters around Maine, reveals how to cook up an affordable feast
Easter 2015: 14 best decorations

14 best Easter decorations

Get into the Easter spirit with our pick of accessories, ornaments and tableware
Paul Scholes column: Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season

Paul Scholes column

Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season
Inside the Kansas greenhouses where Monsanto is 'playing God' with the future of the planet

The future of GM

The greenhouses where Monsanto 'plays God' with the future of the planet
Britain's mild winters could be numbered: why global warming is leaving UK chillier

Britain's mild winters could be numbered

Gulf Stream is slowing down faster than ever, scientists say
Government gives £250,000 to Independent appeal

Government gives £250,000 to Independent appeal

Donation brings total raised by Homeless Veterans campaign to at least £1.25m
Oh dear, the most borrowed book at Bank of England library doesn't inspire confidence

The most borrowed book at Bank of England library? Oh dear

The book's fifth edition is used for Edexcel exams
Cowslips vs honeysuckle: The hunt for the UK’s favourite wildflower

Cowslips vs honeysuckle

It's the hunt for UK’s favourite wildflower
Child abuse scandal: Did a botched blackmail attempt by South African intelligence help Cyril Smith escape justice?

Did a botched blackmail attempt help Cyril Smith escape justice?

A fresh twist reveals the Liberal MP was targeted by the notorious South African intelligence agency Boss