Capital & Counties updated on a “positive start” to the 2014 this morning, a period that has seen the majority of the homes at the first phase of its giant Earls Court scheme in west London has been reserved for sale or exchanged.
At its Covent Garden estate leasing transactions completed at 3.6% above December 2013 ERV.
Four new retail and restaurant lettings including Orlebar Brown and Michelin-starred restaurant, Lima was signed and there were £46m of acquisitions on the estate year-to-date.
At its Earls Court development it said it had met a number of key milestones including the signing of a joint venture with TfL (Capco share 63%) for the Earls Court One and Two exhibition centres.
Detailed planning consent was also granted for Earls Court Village and a change of use to residential for the Empress State Building and following the launch of the first residential scheme at the site – Lillie Square – it said 204 of 237 flats in Phase 1 reserved or exchanged in the five weeks since launch in March.
It said: “Demand has been strong in the five weeks since launch. 204 of the 213 units initially released are reserved or exchanged totalling over £200m of sales, with pricing on individual units achieving up to £1,885 per sq ft.
“The initial launch was focused on standard units, with premium units to be released shortly. Overall, the average sales price for phase 1 is expected to be between £1,400 – £1,500 per sq ft.”
Also at the site it said the transition of its venues business to Olympia London was well progressed with over 80% of Earls Court’s 2014 shows contracted to move to Olympia London for 2015, including the Ideal Home Show and The London Book Fair.
Construction of first phase is on track to start in summer this year and a £130m debt facility (Capco share 50%) to fund these costs is expected to be signed shortly.
Capco said it noted the on-going legal situation in Hong Kong regarding charges against certain members of the Kwok family which have not affected the joint venture.
It said the group’s financial position remains strong with a loan to value of 17% (based on 31 December 2013 property values) and liquidity of £425m.
Ian Hawksworth, chief executive of Capco, said: “We have had a positive start to the year as we create and grow value across our London estates. Covent Garden thrives as a world-class destination, with strong leasing momentum and a number of acquisitions. The re-imagination of Earls Court is moving forward following detailed planning consents and the establishment of the joint venture with TfL. Lillie Square was launched successfully with over 200 units reserved or exchanged, following strong demand for this premium residential development.”
Source: costar.co.uk