Wednesday, 27 July 2016 19:26

Capital & Counties discounts GBP200m off the value of its Earls Court estate

Written by
Rate this item
(0 votes)

London-focused property company Capital & Counties strikes GBP200m off the value of its Earls Court estate.

 

London-focused property company Capital & Counties has struck £200m off the value of its Earls Court estate.

The group’s Earls Court interests were valued at £1.2bn at the end of June, a decrease of 14% from £1.4bn at the end of December 2015.

This was because of the declining value of residential development properties in central London, CEO Ian Hawksworth said on Tuesday, when the company released its interim results for the six months to June.

Year to date, Capital & Counties’ share price has fallen about 44%, largely due to a selloff of its shares following the Brexit referendum in favour of the UK leaving Europe. But Hawksworth said the company was anchored by its two iconic assets, Earls Court and Covent Garden, which would stand it in good stead in the future.

“We have two of London’s very best estates at Covent Garden and Earls Court. Covent Garden is established as a worldclass retail location, attracting high retailer and consumer demand, and continues to deliver immediate value creation,” Hawksworth said.

“At Earls Court, we continue to make positive progress on site. While the last quarter has been characterised by uncertainty in the London market as a whole, the value of this estate will increasingly be realised in the years ahead,” he said.

George Radford, IP Global’s head of Africa, said the weakening in the share prices of some property stocks that are based in the UK should encourage investors to consider buying into those stocks.

source: Business Day

Last modified on Wednesday, 27 July 2016 21:28

Most Popular

Getting into the buy-to-rent market without risking everything

May 03, 2017
Garry Palmer
A low growth economy and a rising cost of living has given property investors pause for…

Nedbank's Private Wealth is growing their presence in the Western Cape

Apr 25, 2017
Nedbank Private Wealth Logo
We are thrilled to announce that we have opened a new office in Stellenbosch.

Attacq appoints Jackie van Niekerk as Chief Operating Officer

May 05, 2017
Jackie van Niekerk md
Attacq announces the appointment of Jackie van Niekerk as the JSE listed capital growth…

Fourleaf Estate in PE is Africa's first residential development to receive full EDGE certification

May 05, 2017
Fourleaf Estate pic
The Green Building Council South Africa (GBCSA) has announced that the Fourleaf Estate…

Midrand residential property market continues to boil - Gauteng¹s fastest growing centre continues to attract investment

May 11, 2017
Waterfall Country Estate R9 95million
While house price growth in Gauteng has shown tentative signs of recovery in the last 12…