CapCo takes a hit at Earls Court

Item End 2016 result (£m) % change year-on-year Earls Court value 1.1 -20 Total property value 3.7 -4.4 Leasing volume 2.3 6 EPRA NAV 340p -6 [caption id="attachment_795174" align="alignright" width="200"] CapCo’s Earls Court scheme[/caption] The value of Capital & Counties’ Earls Court, SW5, interests have decreased by 20% in the year to 31 December 2016 to £1.1bn, compared with £1.4bn a year earlier. In CapCo’S last results in July, Earls Court was valued at £1.2bn. Ian Hawksworth, chief executive said: “Weakened sentiment in the residential market, following changes to stamp duty and political uncertainty, particularly in the first half of 2016, led to a valuation decline at Earls Court Properties of 20% to £1.1bn. As a result, EPRA NAV declined by 6% to 340p per share.” CapCo’s total property value of £3.7bn was down by 4.4% on a year-on-year basis and its dividend return down by 32%. It reported a strong performance at Covent Garden following a record year of leasing activity during which values increased by 6% to £2.3bn. Hawksworth added: “The strong demand for central London retail has continued in 2017 and Covent Garden has had a positive start to the year. We have increased the ERV target to £125m by December 2020, reflecting the positive prospects of the estate.” Ian Durant, chairman, said: “CapCo has delivered good progress in 2016 with considerable activity and milestones achieved at both Covent Garden and Earls Court. Despite macro-economic uncertainty, London is one of the great cities of the world, desirable as a retail destination and residential location.” • To send feedback, e-mail amber.rolt@estatesgazette.com or tweet @amberrolt or @estatesgazette