Capco’s portfolio has shed 5% of its value over the first half of the year.
The West End landlord’s property value fell from £1.9bn in December 2020 to £1.8bn, a like-for-like decrease of 5.1%, as Covid continued to crush activity at its Covent Garden heart. The Covent Garden portfolio itself lost a further 4.9%, decreasing by £85m to £1.7bn, according to its half-year results, released today.
However, Capco chief Ian Hawksworth said: “Capco’s actions, commitment and creativity over the last 18 months have ensured that Covent Garden is the most vibrant district in the West End.”
He added: “We are confident that our approach and the quality of our estate, underpinned by our strong balance sheet, position Capco for recovery.”
The confidence would appear to be backed up by rising rental income, up from £18.2m in June 2020 to £21m. But collections are still low, with just below two-thirds of June-quarter rent collected so far. Meanwhile, 29 new leases and renewals were agreed during the period, representing £6m contracted income, with a further £3.1m under offer, and just 3.4% unoccupied.
Hawksworth said: “The elevated level of enquiries, strong transactional activity and improving sentiment indicate that the worst of the pandemic may be behind us.”
The landlord has already lined up 12 new openings over the next six months, including Peloton, Glossier and Ave Mario.
Its investment in Shaftesbury stayed solid at £552m, but up from the £501m cost.
“Looking ahead, there are challenges in the near term, as the economy moves towards more normal levels of activity,” Hawksworth said. “However, we remain confident in the resilience of London’s West End and the enduring appeal of Covent Garden.”
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