Capital & Counties Properties (Capco), owner of properties in London’s West End and Covent Garden, said its customers’ sales had exceeded pre-pandemic levels through a successful Christmas trading period.
“There is continued momentum at Covent Garden with robust trading, in particular a successful Christmas period with customer sales in aggregate exceeding pre-pandemic levels,” chief executive Ian Hawksworth said yesterday in a trading update for the year to-end December 31. Full results are expected to be released on March 1.
The market reacted favourably to the trading update, with Capco’s share price gaining 3.14% to R24.30 on the JSE yesterday afternoon.
Hawksworth said strong leasing demand for their prime properties in the West End continues to deliver rental growth. An outwards shift in yields resulted in an unchanged valuation for Covent Garden over the year.
“Backed by our strong balance sheet, long-term strategy and creative approach we look ahead with confidence in the prospects and resilience of Covent Garden and the West End,” he said in the update.
Preparations were continuing on the merger of two of the biggest West End property portfolios to form Shaftesbury Capital. Completion of the merger was expected in the first quarter of this year.
The 71 new leases and renewals were signed over the year at Capco.
Leasing momentum was maintained in targeted categories including additional space let to Bucherer, and new signings such as Gaucho
The independent property valuation of Covent Garden was unchanged. Cash and undrawn facilities stood at £423 million (R9 billion), compared to £642m in 2021. Net debt to gross assets rose to 28% from 24%.
Bucherer took additional units in the Royal Opera House Arcade. This followed recent openings including Tag Heuer and Bucherer’s Tudor store. Gaucho is set to open a flagship restaurant on James Street.
Upcoming openings include jewellery concept Mejuri, fragrance house Creed and sportswear brand Hoka, as well as global apparel brand Uniqlo which will open its new flagship store in spring 2023. Stereo, a late night live music and dining venue, recently opened on the Piazza.
Directors declared a second interim dividend of 1.7 pence per share, bringing the total dividend for the year to 2.5 pence per share (2021: 1.5 pence).
BUSINESS REPORT