Capital & Counties Properties (Capco), which is in merger plans with Shaftesbury Capital, said trading activity at London’s Covent Garden remained resilient in the four months to October 31, with strong leasing demand and positive footfall and sales metrics.
“The volatile macro-economic environment is having an impact on asset valuations, but we are encouraged to continue to see rental growth in our portfolio,” CEO Ian Hawksworth said in a statement yesterday.
“Preparations continue on bringing together two exceptional West End property portfolios, to create a leading central London mixed-use Reit ( real estate investment trust), Shaftesbury Capital PLC,” he said.
Although the economic outlook was uncertain, “We are well-positioned with a strong balance sheet and are confident in the long-term resilience and prospects for the West End,” he said.
Since the start of the year Capco has secured 60 leasing transactions representing £6.9 million of contracted income, 10.4% ahead of December 31, 2021.
Covent Garden’s valuation as at September 30, 2022 declined by 2% to £1 785m.
The customer line-up and new brands introduced to the estate included Mejuri and Hoka. Occupancy levels were high, with vacancy held at 3%.
A Christmas programme including a partnership with Dolce & Gabbana was planned.
Capco had access to £421m of liquidity comprising cash of £121m and £300m of undrawn facilities (June 30, 2022: £439m)
Recent lease signings included jewellery brand Mejuri, fragrance concept Creed, premium sportswear brand Hoka and eyewear concept Izipizi. A number of new brands had opened including Shackleton, Vuori and Maje. Luxury watch brand Tudor and late-night music venue Stereo, from the Experimental Group, are set to open ahead of Christmas, with Uniqlo expected to open its flagship store next year.
There had been significant interest in recently refurbished office space and the residential portfolio was fully occupied.
Hawksworth said Covent Garden was well-positioned for the Christmas trading period, offering “unique” customer experiences and an extensive Christmas programme of activities.
These included a brand partnership with Dolce & Gabbana, which would take over the East Piazza with an Italian food market and exclusive products. There will be live performances on the Piazza from the cast of “Elf The Musical”, and the London International Gospel Choir.
Capco's investment in Shaftesbury PLC shares was valued at £357m based on a share price of 368 pence per share on September 30, 2022. The proposed merger was expected to become effective in the first quarter of 2023.
BUSINESS REPORT