Coronavirus: Covent Garden landlord cans £100m share buyback plan as shops shut
Coronavirus has turned Covent Garden into a ghost town and closed restaurants and shops will lead to lost rental cash, according to Capital & Counties (Capco).
The owner of Covent Garden said in a Covid-19 update that most of its retail and dining units on its estate were shuttered and therefore it would incur “a disruption to income”.
The West End landlord has cancelled its £100m share buyback plan as a result.
Capco shares rose 1.9 per cent to 153p on the news.
Capco will allow rent deferrals in some cases and move away from quarterly payments paid in advance to alternative arrangement.
The landlord said this will be “particularly for smaller and independent operators in order to ease short-term cash flow issues and to reopen successfully once the current restrictions are lifted”.
The dual-listed property company said it was too early to measure the coronavirus impact on income and property valuations
Capco’s recent exit from the Earl’s Court development meant its balance sheet remained strong.
The £120m sale proceeds from APG and Delancey will add to its £250m cash position.
The Covent Garden owner also has access to £700m committed undrawn facilities.