Capco defers interim dividend as London property values slump

CAPE TOWN – Capital & Counties Properties (Capco), which owns assets in central London and the West End, said on Wednesday that its property values fell 16.3 percent to £2.3 billion (R52.83bn) in the six months to June 30 compared with the end of 2019, and it deferred the interim dividend.

Central and West End London properties were once among the most expensive in the world, but structural changes to retail, political uncertainty from Brexit and the Covid-19 pandemic have seen their values decline.

Chief executive Ian Hawksworth said, however, that management remained confident of the long-term prospects for central London, in particular the West End.

Covent Garden Estate in the West End, the group’s primary asset, had collected 71 percent of rent in the six months to end-June, from 99 percent in the year-earlier period.

“Covent Garden is a major central London destination offering a pedestrianised open-air environment. Our strong financial position has enabled us to take early action to support our customers, and take advantage of opportunities,” Hawksworth said.