The vacant development site of London’s former Earl’s Court Exhibition Centre has halved in value in just four years, a report claims.
The Financial Times says
that developers Capital & Counties, who own the site along with TfL, now
value their share of the site at £412m. That compares to a valuation of £803m
The newspaper reports that
Capco say this is due to an anticipated rise in development costs for the
project, together with a fall in property values as the London market struggles.
The £12bn regeneration scheme to redevelop Earl’s Court with 7,000 new homes has been delayed for over five years as a result of disagreements between the local authority and the developers over the scheme. The local authority, Hammersmith & Fulham, is now planning to compulsorily purchase the site so that the scheme can be pushed along.
While most people realise
that property can go down in value as well as up a loss of £400m in just four
years is quite some loss. It will remind developers everywhere of the
importance of pressing ahead with a development while the going is good.