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Capital & Counties Properties PLC sees value of its Covent Garden estate plunge


The company said there is substantial headroom against the Covent Garden loan-to-value covenant, with the ability for property values to fall by a further 68% before the bankers reach for the hotline

Properties PLC () said the valuation of its Covent Garden estate reduced by 27% in 2020 on a like-for-like basis.

The independent property valuation for the Covent Garden estate was £1.8bn, down 13% from the end of June 2020 valuation of £2.2bn and down by just over a quarter from the end of 2019 valuation of £2.6bn.

The majority of the valuation movement relates to the retail, leisure and food and beverage portfolio, which represents 75% of the total property value. These businesses have been hit hard by the coronavirus lockdown restrictions.

As of January 28, 2021, the company said 42% of December’s rents had been collected, which is broadly in line with collection rates at the same point in the previous quarter.

The company is still waiting for rents from earlier in 2020, and these continue to dribble in, with 50% of second-quarter rents in the bag, 44% of third-quarter rents and 51% of fourth-quarter rents.

The group’s net debt at the year-end was £710mln, resulting in a net debt to gross assets ratio of 28%, compared to debt of £721mln at the end of June and a net debt to gross assets ratio of 26%.

said there is substantial headroom against the Covent Garden loan-to-value covenant, with the ability for property values to fall by a further 68% before the bankers reach for the hotline. Waivers have been agreed with the Covent Garden lenders in relation to the interest cover covenant for the six months ending June 30, 2021, and the 12 months ending December 31, 2021.

The group has access to total undrawn facilities and cash of £1bn, up from £616mln at the halfway point of 2020.

“Whilst there are significant near-term challenges to trading and an uncertain economic outlook due to the impact of the pandemic, we are encouraged by the enduring appeal of Covent Garden for customers as evidenced by recovery in footfall and trade following easing measures in the second half of 2020. Capco is in a strong financial position and we remain confident in the long-term prospects for Covent Garden and the West End,” the company said in its statement.



Read More: Capital & Counties Properties PLC sees value of its Covent Garden estate plunge

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