November 5, 2018 / 3:51 PM / 7 months ago

UPDATE 1-Capco eyes sale of Earls Court to Hong Kong billionaire

(Adds details on demerger, shares)

Nov 5 (Reuters) - The owner of London’s Earls Court, Capital & Counties Properties, said on Monday 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 .

Capco confirmed it was in the process of splitting its business into two parts - one holding its business running London’s famous Covent Garden estate and a second for the planned billion-pound redevelopment of the Earls Court area.

It said it had received a number of approaches for the West London development.

“The Company has received a number of proposals in relation to Capco’s interests in Earls Court which it is considering,” it said in a statement.

“This includes discussions with CK Asset Holdings Limited regarding a conditional proposal for the sale of substantially all of Capco’s interests in Earls Court Properties (excluding the Lillie Square joint venture).”

It said the board would evaluate the terms of any proposal against the merits of a demerger and other options.

The Earls Court redevelopment includes plans to construct 7,500 new homes, 1 million square foot of commercial space, and 7.5 acres of open space, along with millions in community investment.

A demerger would come at a time when prices for high-end London property have been under pressure amid worries about the impact of Britain’s looming exit from the European Union.

Capco’s shares were up 5.9 percent at 269.5 pence at 1520 GMT, taking the stock to the top on London’s midcap index . (Reporting by Noor Zainab Hussain in Bengaluru and Ben Martin in London Editing by Saumyadeb Chakrabarty)

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