Two Local Flagship Developments Hit by Brexit Concerns
10 Hammersmith Grove sold and value of Earls Court area slashed
Two local flagship developments have been hit by concerns over the vote to leave the European Union in the recent referendum.
Aberdeen Asset Management, owners of 10 Hammersmith Grove, opposite Lyric Square in the centre of Hammersmith, put the office block up for sale to fund a stampede of investors from its £2.7 billion property fund, according to the Evening Standard.
The building, which is home to a number of media organisations including UKTV and the British arm of Fxox TV, had a sale price of £100 million.
However, it is now reportedly under offer to property fund Brockton Capital for £89 million - representing a drop in value of 11%.
The giant Earls Court redevelopment has also been hit by what developer Capco describes as "weakened sentiment" in the London property market following the rederendum.
Capco has cut 14.3%, or £162 million, off the valuation of its 77 acre holdings in Earl’s Court, leaving it at £1.195 billion.
Capco's shares have tumbled by around 40% over the past year amid fears of a collapse in the luxury new homes market, down from highs of over 450p to under 290p.
The write-down left Capco nursing a £109 million pre-tax loss in the first half of this year.
The company, full name Capital & Counties Properties, said there had been no sales at all at its Lillie Square development in Fulham's Seagrave Road, the first part of its Earls Court plans along with the demolition of Earls Court Exhibition Centre, in the weeks before June 23.
Chief executive Ian Hawksworth said "people were not really making capital decisions" during these weeks.
However, Mr Hawksworth added that four apartments at Lillie Square had been snapped up at an average cost of £1.1 million immediately after the Brexit vote.
Phase one of Lillie Square, which is due to be completed this summer, is almost sold out, with "just a few penthouses" remaining for sale and Capco says sales of phase 2 are continuing.
Estate agent Savills is currently selling one bedroom apartments in the development from £785,000 and two bedrooms from £1,250,000.
July 29, 2016
