Yahoo Finance Capital & Counties looks to optimism around lockdown lifting, after Covent Garden estate value drops 27%
Capital & Counties has revealed the value of its Covent Garden estate tumbled by £692 million in 2020 as the pandemic hit, but the boss voiced optimism around the recovery of footfall.
The company, which has over one million square feet of space in the West End, saw numerous tenants last year hit by Covid-19 lockdowns. That meant some struggled to pay rent.
Capco, led by Ian Hawksworth, offered some businesses help, including through rent deferrals and rent holidays in some cases.
The total value of the FTSE 250 firm’s Covent Garden portfolio, which comprises shops, restaurants, offices and homes, fell 27% to £1.8 billion.
The vacancy rate across Capco’s portfolio is 3.5%, compared to 3.2% in 2019.
Hawksworth said early signs around tenants reopening from lockdown next month looked encouraging, with restaurants seeing strong bookings. Some 700 seats for outdoor dining have been set up on the estate.
The chief executive added: “There is a lot of optimism about the opportunity to take part in London’s recovery, and demand is beginning to grow from occupiers.”
He pointed out that footfall and sales were building prior to the latest lockdown restrictions being introduced.
Hawksworth said: “We are optimistic that the enduring appeal of Covent Garden will drive a recovery of footfall and trade over the course of this year and next.”
He added: “Operating conditions will remain difficult for our customers which is anticipated to lead to enhanced levels of vacancy and further adjustments in valuation and rental levels. .... Getting office workers back will help the economy move towards more normal levels of activity.”
Hawksworth said: “There is a clear roadmap for our retailers and restaurateurs to build trade. The upcoming easing of restrictions and the reopening of hospitality, retail and leisure activities will lead to a gradual return of domestic footfall.”
The directors have decided not to propose a dividend for 2020.
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