Capital & Counties boosted by high demand in London

Capital & Counties Properties said its financial position remains strong after being boosted by high demand in the central London retail and residential property market in the first quarter.

Capital & Counties Properties said its financial position remains strong after being boosted by high demand in the central London retail and residential property market in the first quarter.

The group kicked off the year with eight new retailer and restaurant signings in London's Covent Garden including Galeria Melissa.

Galeria Melissa signed a 10-year lease for 43 King Street, the unit previously occupied by Rugby Ralph Lauren, to create a new flagship concept for the Brazilian shoe brand.

New lettings and renewals, representing £2.0m of rental income per annum, were contracted at 10.3% above the December 2012 estimated rental value (ERV) during the year to date.

Elsewhere in Covent Garden, the company launched its second luxury residential conversion, The Russell, in April. The development comprises five apartments with two duplex penthouses and three luxury lateral apartments.

In Earls Court, the company made progress on its masterplan for the development of residential homes.

The Secretary of State for the Department of Communities and Local Government approved the land transfer of the West Kensington and Gibbs Green estates in April which provides the option to acquire about 22 acres of land for £105m plus the re-provision of the 760 homes currently on the estates.

The company ended the period with gross debt of £343m, down from the previous quarter's £348m. Cash balance fell to £145m from £185m.

"Capco has had an active start to the year reflecting the positive conditions in the central London retail and residential property markets and the quality of the group's portfolio," Chief Executive Ian Hawksworth said.

"We continue to see strong demand for new space at Covent Garden from retailers and restaurants with a number of new signings."

Shares rose 0.33% to 308.40p at 08:45 Friday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Oil producers are back at their Covid-19 lows – is it time to buy?
Oil

Oil producers are back at their Covid-19 lows – is it time to buy?

With demand for oil hammered by Covid-19 and talk of “peak oil demand”, there are lots of good reasons to be bearish on oil producers. So, asks John S…
22 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020