May 31, 2019 / 9:12 AM / 5 months ago

BUZZ-Capco: Hits near 7-year low on steep valuation drop of Earls Court

** Shares of Capital & Counties Properties Plc, the owner of London’s Earls Court, was down about 2%

** Stock hits lowest since August 2012

** British property co says value of Capco’s property interests in Earls Court is 412 mln pounds ($519.45 mln), a like-for-like decrease of 10.5% vs valuation at Dec. 31

** Co says this would reduce Capco’s 2018 EPRA net asset value, a key industry metric that reflects the value of a firm’s buildings, of 326 pence by about 6 pence per share

** “A further fall in the value of Earls Court is unsurprising, albeit the scale of deterioration -10.5% through Q1 is greater than we anticipated,” Brokerage Liberum says, adding that it had forecast -8% reduction across FY19

** Liberum: “Valuation weakness at Earls Court and elevated uncertainty for the prime residential investment market could continue to delay Capco’s aspiration to realise the implied value of Earls Court”

** Capco said in November it was in talks to sell the bulk of its interests in the estate to Hong Kong billionaire property developer Li Ka-shing’s CK Asset Holdings ($1 = 0.7931 pounds) (Reporting by Justin George Varghese in Bengaluru)

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