ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Earl’s Court developer cuts value of scheme again

The developer behind the vast Earl’s Court regeneration scheme in west London has cut the value of the project by a further 10%, after having its assets independently valued.

Linked InTwitterFacebookeCard
Earl’s Court
Earl’s Court

In a stock exchange filing today, developer Capital and Counties Properties (Capco) said the value of its Earls Court Partnership joint venture had fallen from £461m in December to £412m, according to an independent valuation it had received from joint venture partner Transport for London (TfL).

Capco had already cut the value of its Earl’s Court properties by 15.6% (like-for-like) in December, valuing the total development at £658m – a like-for-like decrease from the previous value of £759m. That investment included the Lillie Square joint venture, which was valued at £159m, and other properties valued at £38m.

As recently as December 2017, Capco valued the entire Earl’s Court scheme at £1bn, prior to selling off part of the site, the Empress State Building, for £250m.

Capco has a controlling interest in the Earls Court Partnership, the development vehicle formed with TfL to oversee the redevelopment, holding a 63% share to TfL’s 37%.

In a statement, Capco said: “Capco has been notified by TfL that it has obtained from JLL an independent valuation of the underlying property interests held by Earls Court Partnership Ltd as at 31 March 2019 for the purposes of its year-end financial statements, which are due to be published today.

“Based on this valuation, the implied value of Capco’s property interests in ECPL is £412m, representing a like-for-like decrease of 10.5% compared with the valuation as at 31 December 2018 of £461m.

“A number of adjustments have been made to the component parts of the valuation, including increased developer’s margin and total development cost assumptions as well as a more conservative view on gross development value.”

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.