Retail property group Capital & Regional has said it is in an “ongoing dialogue with Debenhams” and is “working on plans for the rightsizing of some stores”.
In its trading update for the six months to 31 December 2018, the retail estate investment trust (REIT) said that Debenhams represented 5.8% of its total income and pays an average rent of £8.65/sq ft on units totalling 340,000 sq ft.
Marks & Spencer’s only full-line store in Capital & Regional’s portfolio, in Luton, which has eight years remaining on its lease, is among the retailer’s store closures.
Footfall across the property company’s portfolio increased by 0.7%, outperforming the national index, which was down 3.7% in the same period.
Rents average £15/sq ft across the portfolio and it completed 87 leasing transactions in 2018.
Despite 20 company voluntary arrangements (CVAs) and retailer restructurings, Capital & Regional expected net rental income for 2018 to be in line with 2017.