Covent Garden leasing demand drives Capital & Counties rental growth
Capital & Counties Properties has revealed strong demand levels for leasing in Covent Garden was one of the main drivers behind the company’s valuation uplift in the second half of 2021.
In the year ended 31 December, the property investment giant reported a total equity of £1.8bn, while underlying net rental income increased from £43.6m to £52.3m.
Covent Garden’s property valuation went up 4.6 per cent in the second half of the year, reaching £1.7bn, while estimated rental value rose 3 per cent on a like-for-like basis.
Covent Garden’s momentum drove the group’s rental growth, with 60 new leases and renewals agreed for a total of £11m. Major brands such as TAG Heuer, Glossier and Uniqlo featured among the FTSE 250 company’s customers.
“We are pleased with the strong level of leasing demand for Covent Garden which has contributed to a valuation uplift in the second half,” said Capital & Counties’ chief executive Ian Hawksworth.
“With footfall continuing to increase, customer sales approaching 2019 levels and our creative approach, Covent Garden is the most vibrant district in the West End and is well-positioned for further rental growth.”
As a result of the group’s strong balance sheet and growth over the last year, Capital & Counties’ board has proposed a final dividend of 1p per share to generate a total dividend of 1.5p per share.
“We look ahead with confidence to continued progress in 2022 to generate long-term returns for shareholders from our unique portfolio of West End investments,” he added.