Convent Garden reports rise in net rental income

During the six months ended June 30, 2017, Capco said that the company further strengthened its financial position reducing loan to value to 18 percent and increasing available liquidity to 577 million pounds (749 million dollars). The total property value of the group increased 0.2 percent like-for-like to 3.5 billion pounds (4.5 billion dollars). The valuation of Covent Garden rose by 1.5 percent like-for-like to 2.4 billion pounds (3.1 billion dollars), driven by rental growth of 2.8 percent achieved over the period.

Commenting on the H1 update, Ian Hawksworth, Chief Executive of Capco, said in a media release: “Covent Garden which now represents two thirds of our business is established as a world class retail and dining destination and continues to deliver positive rental and value growth. There has been strong operational progress across the estate with 43 new leasing transactions signed during the period, including brands such as Kent & Curwen. Our ERV target of 125 million pounds by December 2020 remains in place, reflecting the positive growth prospects of the estate.”

Convent Garden performs well during H1

In the six months, Covent Garden’s ERV increased 2.8 percent like-for-like to 98.8 million pounds (128 million dollars) and the company said, ERV target of 125 million pounds (162 million dollars) by December 2020 remains in place. Capco said, Covent Garden’s rental growth prospects remain strong and the estate is well placed to outperform the wider central London market due to its innovative repositioning strategy, its experiential approach to place-making and its global reputation.

During the period to 30 June 2017, 43 leasing transactions including new leases and renewals representing 6.6 million pounds (8.5 million dollars) of rental income per annum were transacted at 3.9 per cent above 31 December 2016 ERV. A new Zone A rent of over 700 pounds (909 dollars) per square foot for The Market Building was achieved this period. Net rental income was 23.4 million pounds (30.4 million dollars) for the first half of the year, up 7.4 percent like-for-like compared to the first half of 2016.

Convent Garden welcomes new luxury labels

Capco added that occupancy on the estate remains high at 97 percent. Building on the success of the gifting and luxury accessories strategy introduced last year, Capco has further strengthened its offering at the Royal Opera House Arcade through the signing of luxury sunglasses brand Linda Farrow which will offer a range of timeless frames, including a pair exclusive to Covent Garden. This addition joins the curated line-up of premium retailers already in the Arcade, including Mulberry, The Watch Gallery as well as N.PEAL and Tom Davies which are due to open shortly.

The latest signing to the Market Building is premium watch brand Daniel Wellington, who have chosen Covent Garden as the location for their first UK store. British heritage sportswear brand, Kent & Curwen, will open the brand’s first store under the partnership of Creative Director, Daniel Kearns and Business Partner, David Beckham later this year at 12 Floral Street. The place is anchored by both Paul Smith and British lifestyle concept Petersham Nurseries who will open within the Floral Court development.

Capco further said that the transformation of Henrietta Street continues with a strategy to create a new menswear and dining destination in London. Luxury men’s shoe brand, Cheaney and Parisian outerwear clothing concept K-Way opened stores at the beginning of the year. In addition, the latest signing to the street is eyewear brand Bailey Nelson.

Picture:Facebook/Convent Garden