Capco Says Lillie Square Development Hit by Brexit Uncertainties
Flats unsold before referendum and value of Earls Court area slashed
Capco, the property developer behind the £12 billion redevelopment of Earl’s Court has admitted to being hit by uncertainties over Brexit in the run-up to the referendum.
The company, full name Capital & Counties, said there had been no sales at all at its Lillie Square development in Fulham's Seagrave Road, the first part of its Earls Court plans along with the demolition of Earls Court Exhibition Centre, in the weeks before June 23.
Chief executive Ian Hawksworth said "people were not really making capital decisions" during these weeks.
Reflecting what it described as "weakened sentiment" in the London property market, Capco cut 14.3 per cent, or £162 million, off the valuation of its 77 acre holdings in Earl’s Court, leaving it at £1.195 billion.
The shares have tumbled by around 40% over the past year amid fears of a collapse in the luxury new homes market, down from highs of over 450p to around 290p.
The write-down left Capital & Counties nursing a £109 million pre-tax loss in the first half of the year.
However, Mr Hawksworth added that four apartments at Lillie Square had been snapped up at an average cost of £1.1 million immediately after the Brexit vote.
Phase one of Lillie Square, which is due to be completed this summer, is almost sold out, with "just a few penthouses" remaining for sale and Capco says sales of phase 2 are continuing.
Estate agent Savills is currently selling one bedroom apartments in the development from £785,000 and two bedrooms from £1,250,000.
July 29, 2016
