Capital and Counties (Capco) has posted strong results this morning, announcing that its Covent Garden estate is on track to achieve £60-65m estimated rental value (ERV) by December 2015. It also said that its achieved significant progress in its £8bn Earls Court development. (Release)
Since 30 June, Covent Garden has seen new lettings and renewals represent £2.7m of its rental income per annum, contracted at 3.3 per cent above ERV at the point of leasing. Occupancy at the end of September was 99 per cent, with footfall remaining strong, at 44m visitors. Capco reported a loan-to-value ratio of 16 per cent and liquidity of £295m.
14 new openings, including Dior Beauty and Sandro, have underlined Covent Garden's identity as a destination for luxury brands. Reebok and Sticks 'n' Sushi also opened in the period.
The property investor and developer is doing well when it comes to residential property, too, with four out of five of its luxury apartments in The Russell development sold. This has set a new level in the district, with the average price of £2,400 per sq ft across the project. The Beecham and The Southampton will create a further 16 apartments, to be launched in 2014.
In regard to its Earls Court development, Capco says the first detailed planning application, covering the Earls Court Village, will be submitted later this year. The 77-acre, 10.1m sq ft residential-led, mixed-use space includes the Express State Building. Its expected to create 7,500 new homes and 12,000 jobs.
The company has now paid £30m of a £105m consideration payment - which is part of a deal (a Conditional Land Sale Agreement) entered into with London Borough of Hammersmith and Fulham. Paying the first instalment commits Capco to paying the remaining £75m. The payment is for 22 acres of the redevelopment land, including the West Kensington and Gibbs Green estates. The rest will be paid in five annual instalments of £15m, starting at the end of 2015.