Optimistic CapCo, the London-based property group specializing in Covent Garden, is witnessing a resurgence in its business as it steadily recovers from the impacts of the pandemic. In the company’s half-year trading update to the end of June, CEO Ian Hawksworth expressed cautious optimism, suggesting that the worst of the pandemic may be in the rearview mirror. Encouragingly, CapCo has observed a rise in inquiries, robust transactional activity, and an overall improvement in sentiment, all of which point towards a positive future outlook.

Despite enduring further writedowns in the value of its Covent Garden portfolios due to limited trading opportunities in the past year, CapCo maintains its confidence in a gradual recovery. Since the end of 2019, the value of its Covent Garden estate has declined by 31%, and the estimated rental value has dropped by 26%. However, there are hints of progress. Net rental income for the first half of this year surged to £21 million, up from £18.2 million in the previous year. Furthermore, the vacancy rate in the Covent Garden estate improved, decreasing from 3.5% at the end of last year to 3.4%.

Additionally, CapCo has unveiled plans for 12 new store openings this year, including a store for the US sustainable fashion brand Reformation. This displays the company’s confidence and commitment to fostering the ongoing growth and development of the vibrant Covent Garden area. Rent collection for the June quarter saw an improvement, reaching 47% compared to the average of 34% over the previous five quarters. When considering monthly payment plans, the collection rate further rose to 65%.

Hawksworth acknowledges that challenges lie ahead as the economy gradually returns to normal levels of activity. Nevertheless, he maintains unwavering confidence in the resilience of London’s West End and the enduring allure of Covent Garden. CapCo’s positive outlook and gradual recovery signify that it is well on its way to reclaiming its former glory. As the business bounce continues, CapCo is strategically positioned to capitalize on emerging opportunities within the vibrant and thriving Covent Garden area.

Useful Links:
CapCo Official Website
Covent Garden Official Website