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