Covent Garden is faring better than before the pandemic, owner Capco has said.
The REIT, which is due to merge with neighbouring London estate Shaftesbury by the end of the year, said that while footfall continued to “trend towards pre-pandemic levels”, customer sales were, in aggregate, ahead of 2019 levels.
Capco’s portfolio value rose by 4.5% to £1.9bn over the first six months of the year, while the value of Covent Garden, which accounts for £1.8bn of that, rose by 4.8%. Leasing activity for the first half was 9% ahead of the 21 December ERV.
Rental income was up at £28m for the period, against H1 2021’s £21m. And while the REIT made a loss of £11.2m, aided by an £80m valuation gain, this was down from the pandemic-induced loss of £104m for the same period in 2021
Chief executive Ian Hawksworth said: “There has been strong operational progress at Covent Garden with high occupancy levels and excellent demand across all uses. The progress reflects the continued attraction of London’s West End to domestic and a growing number of international visitors, with customer sales in aggregate ahead of 2019. While the broader macroeconomic and political outlook remains uncertain, Capco is very well positioned with a strong balance sheet, low leverage and high liquidity.”
He added that he was “delighted” that shareholders had “recognised the benefits” of the merger with Shaftesbury. The union was given a formal blessing by shareholders in a vote last week.
“Blending the best of both companies, Shaftesbury Capital aims to be a leading central London mixed-used REIT with an exceptional portfolio of approximately 670 properties across the West End delivering sustainable value for shareholders,” he said.
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