Capco welcomes ‘resilient’ Covent Garden performance

Capco has welcomed a period of resilient trading in recent months, particularly in its Covent Garden estate, as it issued a trading update ahead of its merger with Shaftesbury Capital Plc. Trading performance at Covent Garden remained “resilient” in the four-month period ended 31 October 2022, with positive operational indicators on footfall and sales. Covent Garden valuation as at 30 September 2022 was £1.78bn, representing a decline of 2% like-for-like versus 30 June 2022, driven by a 1.5% increase in ERV. In total, 35 new leases and renewals have been signed since June, securing £3m of contracted income, 6.2% ahead of 30 June 2022 ERV. Capco noted there is strong leasing demand ahead of ERV across all uses with a further £2m of rent under offer or under negotiation. Since the beginning of the year, Capco has secured 60 leasing transactions representing £6.9m of contracted income, 10.4% ahead of 31 December 2021 ERV. The group has also welcomed a “strong” customer line and new brands joining the estate. Recent signings include jewellery brand Mejuri, fragrance concept Creed, premium sportswear brand Hoka and eyewear concept Izipizi. A number of new brands have opened, including Shackleton, Vuori and Maje. Luxury watch brand Tudor and late night music venue Stereo, from the Experimental Group, are also set to open ahead of Christmas, with Uniqlo expected to open its flagship store in spring next year. In addition, the group said there has been “significant” interest in recently refurbished office space and the residential portfolio is fully occupied. Overall, high occupancy levels were maintained with 3% EPRA vacancy and positive footfall and sales metrics. Rent collection in relation to the fourth quarter of 2022, invoiced in September and including monthly payment plans of 4%, is currently 97%. Looking ahead, Capci said Covent Garden is “well-positioned” for the important Christmas trading period, offering unique customer experiences and an extensive Christmas programme of activities. These include a brand partnership with Dolce and Gabbana, which will take over the East Piazza with an Italian food market and exclusive products. Ian Hawksworth, CEO of Capco, said: “Trading activity at Covent Garden remains resilient with strong leasing demand across all uses, and positive footfall and sales metrics. The volatile macroeconomic environment is having an impact on asset valuations, however we are encouraged to continue to see rental growth in our portfolio. “Preparations continue on bringing together two exceptional West End property portfolios to create a leading central London mixed-use REIT, Shaftesbury Capital PLC. Although the broader economic outlook is uncertain we are well positioned with a strong balance sheet and are confident in the long-term resilience of and prospects for the West End.”

Capco welcomes ‘resilient’ Covent Garden performance

In total, 35 new leases and renewals have been signed since June, securing £3m of contracted income, 6.2% ahead of 30 June 2022 ERV

Read Next

Landsec subsidiary announces £400m green bond

Galliford Try profit soars 65% in H1

Madison Cairn and PGIM open Staybridge Suites Brighton

MWJW delivers £15m of work across Cornish schools

Investcorp acquires Scottish logistics facility for £23.2m

Landsec subsidiary announces £400m green bond

Galliford Try profit soars 65% in H1

Madison Cairn and PGIM open Staybridge Suites Brighton

MWJW delivers £15m of work across Cornish schools

Investcorp acquires Scottish logistics facility for £23.2m

Crest Nicholson launches show homes in Warwickshire

Peel NRE submits plans to regenerate Fiddler’s Ferry

Barberry celebrates record profits of £17.1m

RLAM sells Preston leisure park to British Land for £51.5m

BoE raises interest rates to 4.25%

Read Next

Landsec subsidiary announces £400m green bond

Galliford Try profit soars 65% in H1

Madison Cairn and PGIM open Staybridge Suites Brighton

MWJW delivers £15m of work across Cornish schools

Investcorp acquires Scottish logistics facility for £23.2m

Related Articles

Crest Nicholson launches show homes in Warwickshire

Peel NRE submits plans to regenerate Fiddler’s Ferry

Barberry celebrates record profits of £17.1m

RLAM sells Preston leisure park to British Land for £51.5m

BoE raises interest rates to 4.25%