Jul 30, 2013
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CapCo says Covent Garden estate now valued at $1.7 billion

Jul 30, 2013

LONDON, England - London landlord Capital & Counties said its first-half net asset value per share rose 14 percent, helped by strong trading at its Covent Garden estate and an uplift in value of its Earls Court properties.

CapCo said on Tuesday its EPRA adjusted, diluted net asset value rose to 232 pence per share for the six months to June 30, from 203 pence at the end of December.

Covent Garden - Capco

Tourist hot spot Covent Garden, whose tenants include luxury retailer Chanel and American burger chain Shake Shack, rose 14 percent in value to 1.1 billion pounds ($1.7 billion). CapCo said it achieved 33 lettings there in the year to date at 9.1 percent above estimated rental values.

The company's Earls Court properties in west London rose 18.5 percent in value to 417 million pounds after it gained mayoral consent and agreed a series of deals for its 8 billion pound development scheme for the west London neighbourhood, it said.

It proposed an interim 2013 dividend of 0.5 pence per share.

"Capco remains well positioned to create and grow value, driving superior shareholder returns through its focus on retail and residential properties in central London," Chief Executive Ian Hawksworth said.

"Demand for prime assets within central London continues to be very strong, with a deep pool of domestic and foreign buyers," he said.

CapCo currently trades at 1.77 times price to book value, making it the highest valued stock among London-listed property companies, Thomson Reuters data showed.

The company and other London landlords such as Shaftesbury have seen their share prices rise thanks to their focus on the capital city, where strong demand for real estate from overseas investors seeking shelter from events such as the euro zone debt have kept prices and values high.

Shares in CapCo, which have risen 64 percent over the past year, closed at 345.8 pence on Monday, valuing it at 2.6 billion pounds.

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