The increase was on the back of strong performance of its Covent Gardens and Earls Court projects after the company’s interim results were released on Tuesday.
Covent Gardens, one of London’s top tourist stops, rose 14 per cent in value to 1.1 billion pounds.
“Active asset management is really the key to Covent Garden. The buildings have been around for several hundred years so it’s an iconic place in its own right. What we’re trying to do is recreate a really interesting residential and retail mix so that it becomes a very important part of central London again,” Capco CEO Ian Hawksworth told CNBC Africa on Tuesday.
Covent Garden receives roughly 4 million visitors a year and had a net rental income of 17.1 million pounds for the first half of the year. Plans are in place to improve the luxury district’s brands, food and beverages services and expand its residential space.
“We’re also able as a result to begin to introduce some residential [space], so we’ve had two small schemes so far. The first was fully sold out last year and we just launched the second scheme called The Russell, which is half those apartments which are available at about two and a half thousand pounds a foot, the first of those having just been sold. It’s really about making this a vibrant and interesting destination for London and visitors to the capital,” Hawksworth explained.
Capco’s Earls Court property development plans are underway and will e the first residential estate in London for over 200 years. It’s also considered to be one of the largest regeneration projects in London. Earls Court properties went up 18.5 per cent in value to 417 million pounds for the first half of the year.
“The first phase will be launched in the next six to 12 months and it’s called Lillie Square. It’ll offer the first phase of apartments. We’ll offer about 200 units, part of an 800 unit scheme and then over time the balance of development should be another 8000 units or so come through,” said Hawksworth.
Covent Gardens and Earls Court properties have a market value of 1.101 million pounds and 823 million pounds respectively as of the period ended 30 June 2013.
Capco als reported a 13 per cent like-or-like increase in total property value to 2.1 billion pounds from December 2012’s 1.7 billion pounds.