The value of West End landlord Capco’s estate plunged by nearly a sixth in the second half of last year, as the pandemic continued to hurt the company’s retail tenants.
On 31 December 2020, the Covent Garden estate was valued at £1.8bn, a decline of 13% in the second half and 27% for the full year. Capco said the drop was in part down to a 22% decrease in rental value.
By Friday last week, just 42% of December rent and 60% of rent for the full-year had been collected.
Capco’s tenants, three-quarters of which are retailers, have faced a torrid six months marked by the third coronavirus lockdown coming in at the end of last year, forcing many to close their doors over the vital Christmas and January trading period.
It comes after Capco issued £275m of exchangeable bonds, and then completed a three-year loan of £125m secured against shares in neighbouring West End landlord Shaftesbury in December.
That was used to help give the company some financial breathing space, with the net debt and loan-to-value ratio of Covent Garden having been reduced to £352m and 19% respectively, down from £779m and 36% at the mid-year point.
Chief executive Ian Hawksworth admitted there were “significant near-term challenges to trading and an uncertain economic outlook due to the impact of the pandemic”.
However, he added: “We are encouraged by the enduring appeal of Covent Garden for customers, as evidenced by recovery in footfall and trade following easing of measures in the second half of 2020.”
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