Capco revises down value of 7,500-home west London scheme

Capital & Counties (Capco) has revised down the value of its mammoth 7,500-home Earls Court scheme by 14% to 拢1.2bn, blaming the impact of the UK鈥檚 vote for Brexit.

The developer - which reported half-year results to June 2016 this morning - had previously valued its Earls Court regeneration scheme at 拢1.4bn.

Capco said the downward move was prompted by its 鈥渧aluers鈥� assessment of the weakened sentiment in the central London residential market following the EU referendum鈥�, including a 鈥渕ore cautious view鈥� of costs and potential sales at early residential phase Lillie Square.

Phase one of Lillie Square is 鈥減redominantly sold鈥�, with construction underway, but sales at phase two have been slower than hoped. Nonetheless, the developer said 59% of the first release of phase two homes are now reserved for sale, with four reservations secured post-referendum.

Commenting on the EU referendum, Capco said it was 鈥渢oo early to make firm predictions [but] we remain confident in our estates and current conditions on the ground remain positive鈥�. At Covent Garden, where the firm has substantial property holdings, the firm has signed three leases for space since the referendum.

The firm added: 鈥淎t Earls Court, we will continue to progress with land enablement and planning activities as we prepare the site for the future.鈥�

Capco posted a 拢109m loss for the half-year period, compared to a 拢263.9m profit the previous year.

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