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Capital & Regional says things are perking up

Capital and Regional CAL Capital & Regional

Capital & Regional says things are perking up –

  • 98% of its stores, comprising 621 shops, are back open and trading across the its seven shopping centres, following the end of the national lockdown on 2 December 2020.  During the lockdown approximately 38% remained open including both retailers providing essential goods and services and those operating click and collect operations.
  • Footfall for the 12 days since the end of the second lockdown on 2 December 2020 was up 41% on the 12 days immediately before, equivalent to approximately 77% of the prior year equivalent.  Despite it having to reduce capacity in order to maintain social distancing, using technology to operate a traffic light system to inform guests via social media of the best times to visit.
  • Good progress in improving rent collection, having now collected, or expect to imminently receive, 73% of all rents that have fallen due from the 25 March 2020 to the date of this announcement.  This is an improvement of 17% since the equivalent figure of 56% announced on 15 October 2020.  Amicable agreements with a number of retailers, providing, in some specific cases, a modest concession in return for them settling the remainder of their rent arrears and their service charge obligations in full.
  • To the end of November 2020 it had completed 37 new lettings and renewals at a combined premium to previous rent of 7.3% and a combined discount to ERV of 4.0%.  Pipeline of more than 20 deals where heads of terms have been agreed or that are in solicitors’ hands.
  • Three Debenhams units which are at risk of becoming vacant if Debenhams ceases trading in the coming months.  It has been working on both short term and long term solutions for the space which vary depending on the ultimate outcome.  While the impact on rents of Debenhams ceasing trading is not expected to be material, if vacant the annual empty rates and service charge cost to the company for the three units will be approximately £2.1m. 
  • Just one unit let to Arcadia with exposure of less than £0.1m.
  • Progressing its “community centre merchandising strategy”. Strong interest from grocery and non-discretionary service and retail occupiers.
  • At Ilford, making strong progress on securing an agreement for lease on a new purpose built community healthcare facility. Plus interest for similar facilities in some other centres.
  • At Luton preparatory work has commenced on the construction of a new unit for Lidl ahead of a planned Summer 2021 opening.

Liquidity

  • As at 11 December 2020, the Group had total cash on balance sheet of £79.3m, which is equivalent to more than one year’s gross revenue.  Of this approximately £60m is held centrally without any restriction. 
  • The Group’s four drawn debt facilities are all non-recourse, with no cross-default clauses.  The earliest maturity on any of the Group’s property loan facilities is February 2023.   
  • The company has signed waivers for all income covenants for the remainder of the year.  Discussions are ongoing with the respective lenders on an individual facility basis over agreements to cover the coming quarters to the extent they are required.

CAL : Capital & Regional says things are perking up

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