Soaring Covent Garden rents have sent the value of landlord Capital & Counties’ properties in the neighbourhood shooting up by almost a quarter to £1.6bn on a like-for-like basis.
The rise follows the introduction of Italian cosmetics brand Kiko on James Street, a prime site that is commanding £1,000 per sq ft – a “rapid progression of value,” the company said. Karen Millen also relocated on the street to a larger unit.
The landlord said the ‘Street to Suit’ strategy to create a menswear focus and complementary dining offering on Henrietta Street has seen positive momentum, with five brands taking space. This includes Nigel Cabourn, Japanese brands The Real McCoy’s and Edwin. Existing tenants Fred Perry and Oliver Sweeney have relocated to Henrietta Street from their previous locations on the estate.
The company has acquired eight new properties over the year for £167m. It said it has created a “significant presence” on Bedford Street, through the acquisitions of 10-14 Bedford Street and 31-22 Bedford Street.
Capco sees huge potential for the area, estimating it will be able to achieve £100m in rent by 2017, and then £125m by 2019.
The property firm has begun work on the development of Kings Court, its largest development to date at Covent Garden, which will transform pedestrian flow in the area between Floral Street and King Street, creating a new connecting passage between the two streets. The development will include eight retail and two restaurant units around a public courtyard.
The company said overall market value, which includes its other properties in Earls Court and Empress State, rose 21.9% over the year to be worth £3.02bn.
Net rental income rose to £70.1m over the year ended 31 December, from £64.8m in the prior year, while underlying earnings rose to £13.1m from £7.3m in 2013.