Capital & Counties PLC wants office workers back as Covent Garden’s value drops

PLC () saw the value of its estate in London’s West End plummet during 2020, but remains confident values will recover as COVID-19 restrictions ease.

The Covent Garden owner said its priority now is to help customers reopen successfully as the government moves through its five-point roadmap to ease the UK economy out of lockdown.

In the early stages of that recovery, Capco said that difficult operating conditions might increase vacancy rates and further adjustments in valuation and rental levels.

Hospitality outlets can re-open outdoors from 12 April but getting office workers back is also important, Capco added, and will help build trade for retailers and restaurateurs.

Covent Garden saw a 27% drop in value in the year to end-December 2020, with the group’s property portfolio declining by 26% in total to £1.9bn.

Net rental income fell by 74% or £45mln as the impact of three lockdowns critically affected its retail and restaurant tenants and after a £694mln property impairment the FTSE 250 business racked up a loss of £704mln.  

Due to the uncertainty, Capco said that it had decided not to pay a dividend for 2020.