Capital & Counties, the £2.5bn London property company, has slashed £200m off the value of its land holdings at Earls Court in a further sign of the fall in the value of central London residential land.
The 14 per cent writedown on Capital & Counties’ share of the 77-acre development — a joint venture with Transport for London — follows a similar cut to the valuation of land at Nine Elms south of the Thames by its fellow property company St Modwen, writes Judith Evans, property correspondent.
St Modwen wrote down the value of its interest in the New Covent Garden Market site by 10 per cent, or £21m, this month.
Both sites are slated for mainly residential development, but prices for newly built luxury homes in the centre of the capital are expected to fall this year.
Capital & Counties also said it had decided not to sell the Olympia exhibition centre after an attempt to dispose of the venue.
Ian Hawksworth, chief executive, said: “At Earls Court, we continue to make positive progress on site. Whilst the last quarter has been characterised by uncertainty in the London market as a whole, the value of this estate will increasingly be realised in the years ahead.”
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