Hong Kong’s CK Asset eyes slice of Capco’s Earls Court

CK Asset Holdings is in discussions to buy into Capital & Counties’ beleaguered Earls Court scheme. The Hong Kong company is controlled by billionaire Li Ka-shing. In a statement today, Capco said: “Capital & Counties Properties notes recent press speculation and confirms that it continues to advance preparations for a possible demerger. “In the interim, the company has received a number of proposals in relation to Capco’s interests in Earls Court which it is considering. “This includes discussions with CK Asset Holdings regarding a conditional proposal for the sale of substantially all of Capco’s interests in Earls Court Properties (excluding the Lillie Square joint venture). The board will evaluate the terms of any proposal against the merits of a demerger and other options.” Earlier this year, Capco was hit by a further decline in the value of its west London scheme, dragging down the company’s entire portfolio value by £17.1m to £3.3bn, off the back of the ongoing decline in values of London residential property. Land is now available for development at the Earls Court project after a long demolition process at the site, which Capco owns in partnership with TfL. Capco had previously said it would look to bring in third-party capital to bring forward phases. In a statement, CK Asset Holdings said: “Property is a core business of the group. We study all projects with good potential and evaluate each one of them prudently, with the aim of generating reasonable returns for shareholders. “We don’t usually comment on any projects which are under consideration but in view of the recent press reports in relation to the Earls Court project, we would like to clarify that the study of this project is at a very preliminary stage and Earls Court is only one of many projects we are looking at.” To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette