Covent Garden retail asset seen as key to investment in Capco
CAPITAL & Counties (Capco) still offers a good long-term investment case because of the strength of its main retail asset, Covent Garden, according to a fund manager."We believe the long-term investment case for Capital & Counties remains intact and hinges around its unique quality retail portfolio, which should prove defensive and continue to achieve good rental growth," said Lesiba Ledwaba, a fund manager at Ashburton Investments.He said Capco offered investors exposure to a prime UK retail asset in Covent Garden, which accounted for about 58% of the value of the assets on the firm’s balance sheet."This unique retail asset has been repositioned and redeveloped to drive up rentals by attracting various premium and unique retail including food offerings. Management has successfully executed on this strategy and are on track to achieve £100m rental income on the property by the end of December 2017. By June 2016, 50 new leases and renewals were signed at 7% above the December 2015 es...
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