Capital & Counties confident on outlook despite economic uncertainty

Capital & Counties sounded a confident note on the outlook for its Covent Garden estate, despite the uncertain economic and political environment, reiterating its medium-term estimated rental value target for it.

However, at Earls Court, the property investor and developer's other main asset, the situation appeared to be somewhat less buoyant. As well, some observers pointed out the lack of any update on work to increase the number of residential units at Earl's Court from 7,500 to 10,000.

At the half-year stage, Capco chief Ian Hawksworth underlined that 43 new leasing transactions had been signed at Covent Garden, including for British heritage sportswear brand Kent & Curwen.

Commenting on trading at Covent Garden, which represented 68% of the company's portfolio, Hawksworth said: "We are delighted with the positive demand for all uses across the estate and signing new brands such as Kent & Curwen and Oystermen during the period."

Covent Garden's total property value increased 1.%% on a like-for-like basis to £2.4bn, while the estimated rental value rose 2.85 to £99.0m.

The company also said it was retaining its end-2020 estimated rental value target for Covent Garden.

At Earl's Court on the other hand, the value of its interests declined by 2.4% to £1.1bn.

However, land enablement work was on track to be completed by year-end.

Progress was also made on planning acivities at the estate, with handover of the Phase 1 units at Lillie Square said to be progressing well and sales of Phase 2 continuing at a modest premium to Phase 1.

As of 0843 BST, shares in Capital & Counties were lower by 1.25% to 307.3p.