Capco to demerge by December

Capital & Counties Properties is to push forward with a demerger of its business into two separate entities by December, as the value of the Earls Court Partnership slides again.

Capco plans to create two independent businesses: Covent Garden London and EC Properties.

It will seek to turn its Covent Garden business into a REIT, targeting long-term returns. It will also seek to roll its £173m 50% stake in the Lillie Square residential project, close to its Earls Court scheme, into Covent Garden.

EC Properties will include Capco’s 63% stake in around