Capital & Regional has extended covenant waivers on loans linked to some of its shopping centres, as its chief executive hailed “encouraging” signs of recovery in the retail market.
The company has agreed an extension on existing covenant waivers on a £265m facility linked to four of its Mall assets until the end of May, and is in talks with lenders to change the terms of the loan. In Luton, it has renewed a waiver of income covenants on a £96.5m loan for three months, until an interest payment date at the end of July.
Income covenants on a £39m loan tied to the company’s Exchange site in Ilford are waived until July and the team has reached an outline agreement for a longer-term relaxation linked to finalising the agreement for lease on a planned healthcare facility project at the site.
Capital & Regional updated investors on its financing alongside a rent collection statement in which it said it has now collected 53% of the money due for the March quarter and 59% of rent due for the year-to-date.
Almost all the company’s tenants are now reopened as Covid-19 lockdown restrictions lift, and footfall across the portfolio stands at 80% of its level at this point in 2019.
Chief executive Lawrence Hutchings said: “Footfall is recovering to some of the strongest levels we have seen since the start of the pandemic, running at approximately 80% against the corresponding weeks of 2019. Whilst we remain in the early stages of the government’s roadmap out of lockdown, initial feedback is encouraging with retailers indicating higher average transaction values reflecting pent-up demand and support for physical retailing.”
To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette
