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

The Property Practitioners Bill set to transform the entire property market

Sep 19, 2017
Storme Heath CAF2
Gazetted in March 2017 for comment, the long-awaited Property Practitioners Bill is…

Ballito Junction Regional Mall is crowned the best new shopping centre in South Africa

Sep 22, 2017
Aerial image of Ballito Junction
Ballito Junction Regional Mall has been named the best new shopping centre development in…

Jones Lang LaSalle South Africa 2017Q2 reports reveal useful trends on industrial, office and retail property sectors

Sep 21, 2017
Christian Ulbrich
Real estate consulting firm, JLL South Africa, has released its Q2 2017 research reports…

Rode & Associates says Capitalization rates are now firmly on a rising path

Sep 22, 2017
Johan Hattingh
Property, whether directly held or listed, was the darling of South African investors…

ADvTech Properties to expand asset base to R6bn by 2022

Sep 26, 2017
Vongani Mbhokota
The properties division of JSE-listed ADvTECH, Africa’s leading private education…