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Capco secures £225m for Covent Garden investment

Property firm Capco has raised £225m from US investors to invest in London’s Covent Garden.

Capco signed the agreement with eight institutional investors and the deal is expected to close in August.

It marks the company’s third US private placement issue. It will share the same financial covenants as the existing £325m of private placement notes issued in 2014 and 2016, and a £705m bank facility signed in December 2015.

The proceeds will be used to repay the bank facility as well as investment in the estate.

Covent Garden is set to welcome British heritage label Kent & Curwen at Floral Street this autumn. It will be Kent & Curwen’s first concept store to open since creative director Daniel Kearns joined forces with business partner David Beckham.

The news comes as Capco reported that Covent Garden grew in value by 1.5% to £2.4bn on a like-for-like basis in the six months to 30 June, while Earls Court decreased in value by 2.4% to £1.1bn.

Ian Hawksworth, chief executive at Capco, said: “Our two central London estates have had an active start to the year. Covent Garden, which now represents two-thirds of our business, is established as a world-class retail and dining destination and continues to deliver positive rental and value growth.

“There has been strong operational progress across the estate with 43 new leasing transactions signed during the period, including brands such as Kent & Curwen, and a number of new openings including The Henrietta Hotel.

“While the broader macroeconomic and political outlook remains uncertain, Capco is very well positioned to drive long-term value creation from its two unique estates and take advantage of opportunities to create further value as they arise.”

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