Capital & Counties boosted by Covent Garden estate

Capital & Counties, the commercial property group formed following the demerger of Liberty International, reported strong growth boosted by the value of its Covent Garden estate.

London Covent Garden At Christmas
Capco unveiled a 4pc rise in net assets on the back of the strong performance of Covent Garden Credit: Photo: Alamy

The company unveiled a 4pc rise in net assets on the back of the strong performance of Covent Garden and assets across Piccadilly and Regent Street in London.

Net asset value per share, a key performance indicator for commercial property companies, rose 4pc to 154p. Profit before tax, which takes into account unrealised increases in asset values, was up 28pc at £70.2m.

Ian Hawksworth, chief executive of Capital & Counties (Capco), said: "Capco has enjoyed a successful and active first half. It is well positioned in the central London property market, particularly in the retail and residential sectors, which continue to perform strongly."

During the half the company, which owns assets valued at £1.5bn, raised £100m to fund acquisitions in and around Covent Garden.

The company said the capital continued to outperform the rest of the country. It also predicted that low interest rates, the economic recovery and limited supply in London would continue to drive growth.

The company's Chinese investments also saw significant growth during the period. One area that did not perform as well was Capco's ownership of Earls Court. Analysts said valuers had yet to take into account the effect of planning work being done on the site.

JP Morgan Cazenove analyst Harm Meijier said: "Capco continues to make impressive progress at Covent Garden, where the company reported a like-for-like estimated rental value growth of 6.3pc over the first half."

Capco will pay an interim dividend of 0.5p, in line with last year, on September 20.

The share price fell 4.3 to 181.3p.