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CapCo held back by Earls Court

Covent Garden is performing well, but residential demand at Earls Court remains under pressure
February 22, 2017

Capital & Counties ' (CAPC) performance in 2016 can be clearly defined thus: the Covent Garden portfolio delivered a 6.4 per cent valuation uplift to £2.3bn while the Earls Court development was valued at £1.bn, a 20.4 per cent decline.

IC TIP: Sell at 300p

Happily, the Covent Garden portfolio didn't miss a blink after the referendum, and leasing activity rose to a record level, with 95 new lettings and renewals agreed, securing £13.3m of rent at 9.3 per cent above December 2015 estimated rental value. And while business rates are set to rise significantly, most tenants will have already priced this in. In addition, there remains strong demand from potential tenants.

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