Strong growth at Capital & Regional
Published: 12 August, 2015
Capital & Regional sees profits up 76 per cent in half year to 30 June 2015
Capital & Regional’s operating profit in the first half increased 76 per cent to £11.8m from £6.7m in the same period last year. The UK shopping centre portfolio was valued at £958.2m up from at 30 December 2014 as a result of £51.8m valuation uplift and the £9.2m acquisition of the Buttermarket shopping centre in Ipswich.
During the six months26 new lettings totalling £1.5 million were agreed as well as £0.8m of lease renewals, both at rents significantly above ERV. Occupancy increased by 2.1 per cent to 96.4 per cent against 94.3 per cent in June 2014.
And the of strategy to upgrade the portfolio continued with the completion of the £3m refurbishment at Walthamstow and the start of a £5m upgrade in Maidstone which is scheduled to complete by June 2016.
At the Buttermarket centre in Ipswich, planning permission for reconfiguring the centre has been secured, construction has started and pre-lets have been signed or are in solicitors’ hands for just under 80 per cent of the redeveloped scheme.
Chairman John Clare said: “Capital & Regional has made a strong start to its first year as a specialist UK shopping centre REIT. Our hands-on approach to asset management, combined with improving economic conditions for our retailers and leisure operators, have driven both letting and occupancy across our portfolio. This provides a sound platform to deliver future growth through the capital expenditure programme supporting our existing portfolio, as well as through the acquisition of retail assets where we can see potential to grow income, such as the Buttermarket centre in Ipswich.”