The property company Capital & Counties said on Wednesday its large-scale development site at Earls Court had shed a fifth of its value in a year thanks to “adverse conditions in the London residential market”.

The more than 70 acre site was valued at £1.1bn at the end of 2016, down 20 per cent from its £1.4bn valuation at the end of 2015.

This pushed the £2.5bn group, which also owns a large area of Covent Garden, to a £119m loss for the calendar year, down from profits of £431m a year earlier, it said in final results released on Wednesday.

It is proposing a final 2016 dividend of 1p a share, bringing the full-year dividend to 1.5p a share, unchanged from last year.

Ian Durant, chairman, said:

2016 was a year of notable political and economic dislocation which has affected the London property market. London remains a very attractive investment market, a desirable retail destination and residential location.

Looking through short-term market movements Capco’s long-term strategy for its two unique estates remains unchanged.

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