London property company Capital & Counties Plc (CapCo) has cut the value of its Earls Court development by 14 per cent due to worries about a fall in London house prices after the Brexit vote.
In its interim results, CapCo said it valued the Earls Court site – which will create 7,500 homes – at £1.2bn, down from the £1.4bn estimated in December 2015.
CapCo's share price was down 4.39 per cent in early afternoon trading after it's announcement.
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The property firm also upgraded the total property value of its Covent Garden development by three per cent, up to £2.1bn from from £2bn in December 2015.
CapCo said: "At Earls Court, we continue to make positive progress on site. Whilst the last quarter has been characterised by uncertainty in the London market as a whole, the value of this estate will increasingly be realised in the years ahead.
"Capco's strategy remains unchanged as we aim to deliver value creation for shareholders over time from two exceptional real estate investments in the world's greatest city."
Some analysts have predicted house prices could fall by five per cent over the second half of 2016. One developer at the Nine Elms site has cut the value estimate for its portion of the development over worries about a fall in the price of luxury flats.