Capco has seen the value of its Covent Garden portfolio fall by close to a fifth over the start of this year.
The Covent Garden property is valued at £2.2bn, Capco said in a trading update for the six months to 30 June. That figure is down by 17% from £2.6bn at the end of December.
Almost all the decline was accounted for by Capco’s retail, leisure, and food and beverage portfolio. The valuations drop was driven by a 12% fall in ERV to £95.5m, yield expansion of 17 basis points to 3.82% and the valuer’s assumption of a £31m loss of near-term income.
Capco has collected just 44% of rent due for the March quarter and 27% due for the June quarter. That takes the half-year total to 71% of rent collected, compared to 99% for the same period a year ago.
The coronavirus pandemic has also hit Capco’s leasing – over the past six months the company has completed 22 transactions with a combined rental value of £2.7m, down from £13m during the first half of 2019.
Capco’s loan-to-value ratio stands at 32%, and the company has £616m in cash and undrawn facilities.
The company has received £90m of deferred consideration from its sale of Earls Court, and expects a further £105m to be paid later this year and £15m next year.
It is also publishing a shareholder circular for the second part of its acquisition of a 26.3% stake in Shaftesbury.
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