In their preliminary results for 2018, Capital & Counties say they are “realising value” from their Earls Court assets, but looking at a demerger and “considering other options”.
The Earls Court property interests are now valued at £658 million in total, a decrease of 15.6 per cent (adjusted for the sale of the Empress State building for £250m). Capco say they now have land available for development, with incoming interest from potential occupiers and investors.
They say they are making “excellent progress” at Lillie Square, with Phase 1 substantially complete, and completion of Phase 2 expected in 2020.
Henry Staunton, Chairman of Capco, commented: “At Earls Court progress has been made with the land available for development and value realised through disposals.
“Our balance sheet allows the Board to consider the future of its two estates from a position of financial strength. Preparations for a possible demerger are well advanced and could be implemented promptly, and the Board is also considering other options for Earls Court.”
Ian Hawksworth, Chief Executive of Capco, commented: “Economic and political uncertainty have continued to impact the London residential market, resulting in a further valuation decline in our investments at Earls Court.
“The land benefits from an in-place planning consent and is now available for development which is expected to be brought forward through the introduction of third-party capital. We have realised significant proceeds from the sale of the Empress State Building and continued sales at Lillie Square.”
