Saudi Arabia's sovereign wealth fund denies link to Capco deal talks

The Saudi Arabian Ambassador has quashed reports his country’s sovereign wealth fund is backing property tycoon Nick Candy’s potential bid to buy developer Capco.

A consortium led by Candy said last month it was mulling a takeover offer for the Covent Garden and Earl’s Court landlord. It has a market value of £2.1 billion.

Candy Ventures, which has not to date named which parties it is working with, did not comment today.

The Saudi ambassador said “there is no involvement” from Saudi’s Public Investment Fund , contrary to reports.

His denial came in a letter dated November 5 to campaigners trying to protect two Earl’s Court housing estates where a huge redevelopment is planned.

Khalid bin Bandar Al Saud said: "I have made enquiries in the Kingdom regarding your assertion that the Saudi Public Investment Fund is part of a consortium led by Candy Ventures. I have been informed there is no involvement from the Saudi Public Investment Fund."

Jonathan Rosenberg, community organiser of the West Kensington and Gibbs Green estates campaign group, said he welcomed the letter. He added: “Anyone else who fancies a punt had better talk to us first."

Stephen Cowan, Hammersmith & Fulham council’s leader, said he thinks residents in Earl’s Court will be “relieved”. He last month wrote to the king of Saudi Arabia urging him not to get involved in a swoop.

Capco remains in talks to sell its Earl’s Court business to another developer, Delancey, it is understood.