CAPE TOWN - CAPITAL & Regional, landlord of seven regional shopping centres in the UK, said yesterday that the end of the second national lockdown in the UK, was encouraging.
The share price shot up 10.43 percent to close at R14.29 on the JSE yesterday following the release of the announcement.
Ninety-eight percent of its units were open, the UK-listed real estate investment group with a secondary JSE listing, said in an update yesterday. Chief executive Lawrence Hutchings said this was even though some form of government restrictions were likely to continue for a period of time.
Pre-existing structural changes in the retail space had accelerated through the pandemic, but he believed the group was well placed given a low exposure to the categories most impacted.
“Demand for retailers to rapidly return to trade, coupled with a similar response from our consumers who had been eager to get back to their local shops, was evidence of the relevance of physical retail and the role that community focused centres play in local essential infrastructure”, he said.
The company completed more than 30 leasing transactions this year and there was a pipeline with more than 20 deals where heads of terms, or which were in solicitors’ hands, had been agreed.
These would enable the remerchandising and repositioning of its centres to continue, a process started three years ago. During the lockdown about 38 percent of the stores remained open.
Footfall for the 12 days since the end of the second lockdown on December 2 was up 41 percent on the 12 days immediately before, equivalent to 77 percent of the prior year equivalent.
Hutchings said this was a good turnout considering capacity had to be reduced to maintain social distancing, using technology to operate a traffic light system to inform guests via social media of the best times to visit.
Progress had been made on rent collection and 73 percent of rents that was due from March 25 to yesterday had either been or would shortly be received. This was an improvement of 17 percent since the equivalent figure of 56 percent announced on October 15, 2020.
Amicable rent agreements had been reached, and in some specific cases, a modest concession was granted in return for tenants settling their rent arrears and their service charge obligations in full.
Three Debenhams units were at risk of becoming vacant if Debenhams ceased to trade in coming months, and given the uncertainty over Debenhams, short- and long-term solutions for the space were being considered.
Progress on the community centre merchandising strategy continued to be a central focus, with strong interest from grocery and non-discretionary service and retail occupiers.
At Ilford, progress was made on securing an agreement on a new purpose-built community healthcare facility. At Luton preparatory work had started on a new unit for Lidl ahead of a planned Summer 2021 opening.
As at December 11, cash came to £79.3 million (about R1.59 billion), which was equivalent to more than one year’s gross revenue. Of this about £60m was held centrally without restriction. The earliest maturity on loan facilities was February 2023.
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