Capital & Regional expects Debenhams CVA rental impact
Capital & Regional has said it expects Debenhams’ CVA to impact its 2019 rental income of approximately £0.7m and £1.3m on an annualised basis.
The business has three Debenhams stores throughout its shopping centre portfolio, none of which are part of the 22 stores due to close.
Capital & Regional added in its latest trading update that it had also completed 20 leasing transactions in the first four months of the year at an average premium to passing rent of 3% and 5.2% to ERV1. This included eight new lettings and 12 renewals for a combined yearly income of £1.2m.
Capital & Regional has said it expects Debenhams’ CVA to impact its 2019 rental income of approximately £0.7m and £1.3m on an annualised basis.
The business has three Debenhams stores throughout its shopping centre portfolio, none of which are part of the 22 stores due to close.
Capital & Regional added in its latest trading update that it had also completed 20 leasing transactions in the first four months of the year at an average premium to passing rent of 3% and 5.2% to ERV1. This included eight new lettings and 12 renewals for a combined yearly income of £1.2m.
In addition, the firm said it had another 30 leasing deals currently agreed or in solicitors’ hands, representing more than £2m of annual income.
Occupancy across the portfolio stood at 96.7% as at 30 April 2019.
Lawrence Hutchings, chief executive at Capital & Regional said: “We continue to see solid progress in executing our strategy to reposition our community centres to focus on needs-based and less discretionary goods, especially in our London and South East assets.
“We firmly believe that our repositioning and remerchandising plans, low average rents and high footfall metrics, differentiate our centres and ensure they remain relevant, profitable and attractive to retailers as the structural changes in physical retailing continue to evolve.
“The strength of our leasing activity last year and the level of committed and pipeline deals during the first four months of 2019 provides further evidence of the continuing relevance of our centres and the quality of our platform and team members. We believe our management capability is a valuable asset in the current environment.
“Clarity around Debenhams is welcome news, enabling us to plan our capex and remerchandising proactively.
“In addition, we continue to take forward plans to unlock the underlying value of our real estate through mixed use development rights above and immediately adjacent to our centres.”
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