CAPITAL and Counties (Capco), the UK-based owner of London’s Earls Court and Covent Garden, has lost momentum, with its share price having weakened considerably after initial strong growth last year.But analysts believe the company’s shares offer value at existing price levels, as its core assets offer solid, long-term returns.Shares in the company, which released annual results for the year to December yesterday, have fallen more than 20% since the beginning of October, with its Earls Court lifestyle estate losing business in a slowing London residential market.Fears of Britain exiting the eurozone (Brexit) have also brought pressure to bear on the British real estate sector.The company’s new residential development, Lillie Square in Earls Court, which will contain 808 flats, also came under pressure. A slowdown in the prime central London market led to Capco reserving or exchanging only 40%, about 30 flats, in the five months of a phase two sales rollout, compared with 200 having ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.