Capital & Counties have released their interim results for the six months to June 2018, showing falling Earls Court valuations as they pursue a strategy of “realising value”.
The valuation of their share of the Earls Court partnership with TfL has fallen over the period, in contrast to the valuation on their other significant asset, Covent Garden.
The Earls Court interests are valued at £707 million, a decrease of 7.0 per cent like-for-like on December 2017, adjusting for the sale during the period of the Empress State Building for £250m.
Their delivery on the development at Lillie Square has moved to substantial completion on phase 1, allowing them to realise £123m of cash proceeds. Capco say that over 80 per cent of Phase 2 is now reserved or exchanged. Construction work on that phase has now commenced.
They have also taken early steps in preparing for a possible demerger of the company into two entities focussed on their two major estates.
Ian Hawksworth, Chief Executive of Capco, commented: “At Earls Court, the consented land is now ready for development and we have realised significant proceeds over the last twelve months from the sale of the Empress State Building and continued sales at Lillie Square.
“Whilst the broader macroeconomic outlook remains uncertain, Capco is backed by a strong balance sheet and remains focused on creating long-term value for shareholders. Our two prime central London estates are well-placed for long-term success.”
No mention is made in the results announcement of the two Hammersmith & Fulham estates, West Kensington and Gibbs Green, sold to Capco by a previous council administration, and which the current council has asked be returned to them.