The regeneration of Covent Garden has driven growth for property investor Capco, which has seen nearly 5% growth in the value of its portfolio for the first half of 2012.
Capco’s Covent Garden properties – which include the Piazza and surrounding areas such as much of Long Acre, Floral Stret and King Street – rose in like-for-like value to £856m, up from £808m in December last year. This represents a 4.5% increase in valuation.
A total of nine new retailers and restaurants have taken space in the first six months of the year, including Opening Ceremony and Melissa pop up shops. Opening Ceremony is set to take a permanent unit later this year.
Capco said its new lettings were 9.4% higher than December’s estimated rental value, having risen from £45.8m to £47.1m. It is on track to deliver its target of £50m by 2013.
Long term, its plans have shifted towards “more significant intervention in certain parts of the estate”, and planning applications are likely to be submitted in due course.
The company’s portfolio as a whole – which takes in properties in Earls Court and Seagrave Road – increased in value by 4.8% to £1.6bn. Earls Court land is now valued at £9.5m per acre up from £8.6m last December.
In total the company returned 7.4% in total during the six month period.
Chief executive Ian Hawksworth said: “This is another strong set of results from Capco as we work to unlock value from our prime central London assets.
“The creative regeneration of Covent Garden is driving growth, there is positive momentum at Earls Court and Seagrave Road, and our successful recycling of capital gives us a strong balance sheet and the ability to capitalise on future opportunities across our estates”.