Yahoo Finance Capco property portfolio value falls, but boss hopes worst of pandemic “may be behind” the landlord
Capital & Counties saw the value of its Covent Garden estate lose £85 million in the first half, but the boss has predicted the worst of the pandemic may be over for the landlord.
Ian Hawksworth said footfall across the firm’s central London portfolio is “growing by the day” and vacancy levels remain low, in encouraging signs following a turbulent period.
Most of Capco’s restaurant and retail tenants have had to temporarily close sites at various points since March 2020, and the landlord offered some businesses support, including rent deferrals and rent-free periods.
The value of the Covent Garden estate in the six months to June 2021 stood at £1.7 billion, 4.9% lower on a like for like basis than the December 2020 figure.
But Hawksworth said a number of companies now feel more confident to open new stores and restaurants, and existing occupiers have seen good sales levels. He pointed to a strong performance from the luxury sector across the estate, with good demand for jewellery and leather goods.
Some 12 new openings are scheduled over the course of this year including Peloton opening a studio.
Capco also said it will recommence dividend payments.
The chief executive said: “The elevated level of enquiries, strong transactional activity and improving sentiment indicate that the worst of the pandemic may be behind us.”
He added: “Looking ahead, there are challenges in the near term, as the economy moves towards more normal levels of activity, however we remain confident in the resilience of London's West End and the enduring appeal of Covent Garden."
Stifel analyst John Cahill said: “The interim results show improving patterns of rent collection and transactional activity, yields are stable, and the re-instatement of the dividend indicates a confidence that the worst may now be over.”
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