Capital & Counties Properties (Capco) has seen the value of its London estates rise by 9 per cent to £3.4 billion during the six months ending 30 June 2015.
Much of this growth has taken place at Capco’s Covent Garden estate which, during the first half, rose in value by 9 per cent to £1.8 billion and saw a subsequent lift of 8 per cent in its estimated rental value (ERV) to £83 million.
Furthermore, Capco completed around £50 million worth of acquisitions in the area during the period, consolidating ownership on Henrietta Street and Bedford Street whilst achieving a new Zone A rental level of £1,400 per sq ft on James Street.
Leasing activity has been high in the Covent Garden estate, with new leases and renewals climbing by 11 per cent when compared to the ERV set in December of last year. The demand for space also helped to achieve new rental levels for the residential and office spaces within the portfolio.
Capco chief executive Ian Hawksworth believes this trend will help the firm achieve its long term goals.
He says; “Our two London estates have had a positive and active start to the year. Covent Garden is established as a leading destination for global brands wishing to come to London and demand for the estate across all uses is strong.
“We are on course to deliver circa 10 per cent underlying annualised rental growth to achieve an ERV target of £100 million by December 2017.”
Capco’s other major project, the investment vehicle formed with Transport for London (TfL) known as the Earls Court Partnership Limited, also remains on track, with interests at Earls Court valued at £1.3 billion – a 6 per cent rise on a like-for-like basis from December 2014. Under terms of the partnership agreement, Capco’s share of the project stands at 63 per cent, as it is responsible for leading the venture.
While the demolition of former exhibition centres within the estate is still ongoing, significant progress has been made at Lillie Square, where Phase 1 of construction is expected to complete during 2016. So far, this phase has generated £258 million worth of sales, while formal sales of the space created by Phase 2 are expected to begin in September of this year.
Mr Hawksworth cocludes; “Our plans at Earls Court continue to advance – we have completed the investment vehicle with TfL and demolition is progressing well.
“At Lillie Square, construction of Phase 1 is on track and we are finalising plans to begin sales of Phase 2. We enter the second half of the year with a strong balance sheet and a clear strategy to drive long term value creation for our shareholders.”
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