THABANG MOKOPANELE

Property Editor

CAPITAL & Counties Properties, which is listed in Johannesburg and London, said on Friday it was looking at developing its 28ha of land at Earls Court — a prime spot in the centre of London earmarked for 8000 new houses, and likely to create 24000 new jobs.

CEO Ian Hawksworth told Business Day that the value of the project would be £10bn over the next 10 to 15 years, and the company was working with the London authorities to get a planning application ready for June next year.

He said the potential rezoning and development of the prime Earls Court site remained a priority for the company that was spun out of the recent de-merger of UK-based property company Liberty International.

The company’s Earls Court & Olympia is an established exhibition centre and is the gateway to a 28ha plot of land located within the boroughs of Kensington and Chelsea, and Hammersmith and Fulham. The site is known as the Earls Court Opportunity Area and presents a strategic, long-term land management and development prospect for Capital & Counties.

The London master document, which is expected to be released early next year by the city’s mayor, will give an indication of plans for the next 10 to 15 years.

Mr Hawksworth said the company, which has about a 40% South African shareholding, was focused on finalising its planning application for submission in June next year.

“The Earls Court redevelopment will see a significant increase in land value for the company. The approval will benefit shareholders,” Mr Hawksworth said.

He said the strategy was to realise the potential development opportunity at Earls Court, while protecting the exhibition income by transferring the business to the Olympia site. “We have allocated £20m to the redevelopment of Olympia with the aim of increasing the venue’s utilisation to 70%,” he said.

The company had also started the process of regenerating Covent Garden, which is located at the heart of London’s West End and is a world famous historic location which attracts over 45-million visitors a year.

Mr Hawksworth said the company acquired the site in 2006 and had renewed 100 tenancy agreements and introduced 63 other new tenants to the area.

As a result, the estate generated £26,6m of net rental income last year, an increase of 16% on the previous year.

Mr Hawksworth said the company’s strategy for Covent Garden was to increase rental values and income by enhancing the tenant mix.

“We are securing lettings for flagship stores, revitalising the restaurant and bar offering and extending trading hours.”

He said by introducing shorter, turnover-based leases, Capital & Counties was forming a closer relationship with its tenants and building the foundations for a “dynamic and exciting” district which would be “a true destination for Londoners and high-end visitors” to the capital.

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Source: Business Day