Covent Garden landlord Capital & Counties on Wednesday said it was ready for a “prompt” demerger of its Earls Court development as the value of the scheme took another hit.
It said nine months ago it was considering a spin-off of Earls Court into another listed vehicle, although the move has also flushed out would-be buyers including Li Ka-Shing’s CK Asset Holdings.
“Others have come into the pot,” according to chief executive Ian Hawksworth.
But the tough nature of London’s residential market saw the firm take yet another writedown on the Earls Court assets, which fell by £101 million to £658 million last year. That drove a slight 2.4% decline in the overall value of Capco’s portfolio to £3.3 billion.
Hawksworth added that the board would be able to take an eventual decision on a demerger from a “position of strength” despite the uncertain backdrop due to the performance of its Covent Garden property.
The Covent Garden estate now accounts for 80% of the business and a host of upmarket retailers have bolstered its rental income from the estate, up 10% year on year thanks to the arrival of names like Tiffany, Peloton and Lacoste.
