Covent Garden, Earls Court developments on track at Capco

6th May 2016 08:11

(ShareCast News) - London property company Capital & Counties reported strong trading activity in the year to date on Friday, as its redevelopment of the Covent Garden and Earls Court areas in central London continued.The FTSE 250 firm was on track to achieve an estimated recovery value target of £100m at Covent Garden by December 2017, with 37 new lettings signed since the start of the year representing £4.5m of passing rent.In line with its strategy to reposition the Royal Opera House Arcade as a luxury accessories and gifting destination, a new lease has been agreed with The Watch Gallery, where 50% of the store will be dedicated to Rolex."Our strategy to deliver value creation from our two central London estates continues," said Capco chief executive Ian Hawksworth.Capco said the quality and variety of dining on the estate was strengthening following a letting to VyTA Santa Margherita in the Market Building.It said the Italian restaurant is a first for the UK, renowned for its high quality food and wine selection."The development of Kings Court is on track and will kick-start the placemaking opportunity on Floral Street," Hawksworth explained.At Earls Court, the demolition of the former exhibition centres to ground level remained on track for completion in the second half of the year."Construction of Lillie Square is progressing well and the first homes will complete later in the year as we welcome our first residents," said Hawksworth.Phase two sales at Lillie Square were also ongoing, and since the last update on 24 February nine units have been reserved or exchanged, Capco reported.Of the first release of 70 units for sale in phase two, 37 have been reserved or exchanged in total at values around 5% higher than comparable units in phase one.More than £300m of sales have been achieved to date across the Lillie Square scheme.Of its other properties, the Olympia London events venue had already held more than 40 events, including established shows such as the Ideal Home Show and the London Book Fair.Capco described its financial position as strong, with a loan-to-value ratio of 18% based on 31 December property values and more than £450m of liquidity.Its weighted average cost of debt stood at 2.8%.