Covent Garden helps Capco post increase in net rental income
Capital & Counties says the Brexit-induced economic and political uncertainty affected the valuation of residential-led development land
Capital & Counties Properties (Capco) managed to raise its first-half net rental income as a result of a positive performance at Covent Garden estate, which is located in London.
The value of the estate rose 1.5% to £2.4bn in the six months to June on a like-for-like basis, with the estimated rental value increasing 2.85% to £98.8m.
"There has been strong operational progress across the estate, with 43 new leasing transactions signed during the period," CE Ian Hawksworth said in a statement.
"Our ERV [estimated rental value] target of £125m by December 2020 remains in place, reflecting the positive growth prospects of the estate."
But the value of Earls Court Properties dropped 2.4% to £1.1bn in the review, partly reflecting amendments to its development programme, the company said.
The JSE-listed group said the Brexit-induced economic and political uncertainty had affected the valuation of residential-led development land, but had had a limited effect on tenants at its Covent Garden estate.
Overall, group net rental rose to £32.4m, from £28.6m in the year-earlier period.
The share price was down 1% at R51.90 in early trade on the JSE.