A strong second half has helped Covent Garden owner Capco cut its losses.
Capco boss Ian Hawksworth said that the independent valuation, as at 31 December, was £1.7bn, a like-for-like increase of 4.6%.
“Covent Garden has had a strong second half of 2021 and despite the backdrop of the Omicron variant, consumers continued to be attracted to the West End’s most vibrant destination,” he said.
“We are pleased with the strong levels of leasing activity and improving market indicators which have contributed to a valuation uplift in the second half. We look ahead with confidence to continued progress in 2022 and in the long-term prospects of the Covent Garden estate and the West End.”
But despite the strong second half, driven largely by a 3% increase in ERV on a like-for-like basis, values are still -0.6% down over the year.
The trading update added that the valuer’s assumption on loss of near-term income has been reduced from £11m to nil.
Rent collection for the first quarter of 2022, invoiced in December, is currently at 86%.
It added that Capco’s investment in Shaftesbury was valued at £596m, based on a share price of 615p per share on 31 December 2021, a marked rise on the 30 June value of £552m and the 517p per share Capco paid for the stake in 2020.
Capco made £77m over the second half from disposals. It currently has liquidity of £652m, including cash of approximately £342m.
Year-end net debt within Covent Garden of £250m resulted in a loan to value ratio of 15%. Group net debt at the year end was £599m, resulting in a net debt to gross assets ratio of 24%.
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