The allure of Covent Garden for tenants and tourists helped Capital & Counties to deliver an 11.6% hike in net asset value to 166p a share last year.
Capco’s central London estate rose in value by 9.2% to £808m, driven by an 8.8% increase in estimated rental values.
The group said it achieved its 2012 ERV target of £40m 18 months ahead of schedule, and is now aiming for £50m next year as it looks to close the rental gap between Covent Garden and other parts of prime central London.
At Earls Court and Olympia, values rose by 10.9% to £471m as it ploughed on with redevelopment plans, such as its 11m sq ft residential scheme Seagrave Road, which it is developing with the Hong Kong-based Kwok family.
The firm’s total investment holding increased by 9.2% to £1.6bn. Its loan-to-value ratio is marginally down to 32% from 35.7%.
It also announced the sale of £150m of assets from its Great Capital Partnership joint venture with Great Portland Estates to the REIT at a 5.4% premium to book value.
bridget.oconnell@estatesgazette.com
