| Tue 9 Nov 2010, 9:02 | | CCO - Capital & Counties Properties PLC - Interim management statement for the |
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JSE CCO
CCO
CCO - Capital & Counties Properties PLC - Interim management statement for the
period 1 July to 9 November 2010
Capital & Counties Properties PLC
(Incorporated and registered in the United Kingdom and Wales with registration
Number 07145041 and registered in South Africa as an external company with
Registration Number 2010/003387/10)
JSE code: CCO
ISIN: GB00B62G9D36
CAPITAL & COUNTIES PROPERTIES PLC ("Capco")
INTERIM MANAGEMENT STATEMENT FOR THE PERIOD 1 JULY TO 9 NOVEMBER 2010
Highlights
* The Covent Garden estate has continued to perform well with recent lettings
to several strong brands in line with our zoning strategy, including Rugby
Ralph Lauren, Laduree and Jack Wolfskin.
* The opening of the world`s largest Apple store in August 2010 attracted
over 20,000 visitors on its first day of trade which helped to drive an 11
per cent footfall uplift in Covent Garden in the first month of trading and
continues to attract high numbers of visitors.
* The Earls Court planning process has advanced well during the period with
good progress on the planning policy and the development of the masterplan.
* The London Borough of Hammersmith & Fulham has resolved to grant planning
permission for the expansion of the Olympia Exhibition Centre to create an
enhanced events and exhibitions facility.
* As announced today, a refocusing of the Great Capital Partnership on its
West End holdings has been agreed.
Ian Hawksworth, Chief Executive of Capco commented:
"We have continued to make good progress across the business in the
implementation of our strategy to unlock latent value from our estates. Further
progress has been made in Covent Garden with strong demand from retailers
driving rents in excess of the valuer`s June 2010 estimates of ERV. Plans for
Earls Court and Olympia have advanced with the positive planning decision for
the redevelopment at Olympia and we remain on course to submit a planning
application for the Earls Court site in the first half of 2011."
Covent Garden
We have continued to make progress with our repositioning plan for the Covent
Garden estate, with 32 rent reviews, renewals and lettings agreed since July
totalling GBP6.2 million of rental value per annum at approximately 7 per cent
above June 2010 ERV. Recent lettings include Laduree, Whistles, Jack Wolfskin,
Pandora and Sunglass Hut which set a new record Zone A rent level for James
Street. In addition to this, two high profile exclusive "pop-up" stores have
opened: Lucy in Disguise by Lily Allen and, for the first time in the UK,
American label Kate Spade.
The luxury zoning strategy for King Street is developing well. The lease
agreement with the Burberry Group in August has been followed with a highly
competitive pitch between three international luxury brands resulting in an
agreement to lease 43 King Street to Rugby Ralph Lauren at a rent substantially
higher than the valuer`s June ERV. During this period, 37 King Street was
acquired which increased our ownership on the street.
The revised planning application for a destination restaurant and cultural
offering for the Flower Cellars has been submitted to Westminster Council. The
Covent Garden residential project is progressing well with work on site at 34
Henrietta Street underway.
The estate has an occupancy rate of 97.1 per cent adjusted for areas held for
development and under offer as at 30 September. Footfall for the 12 months to
September increased 7 per cent to 46.4 million visitors. To date 99 per cent of
the September quarter`s rent has been received.
Earls Court & Olympia Group
The exhibitions business has been performing well year to date. Recent shows
have included Top Gear Live, 100% Design and The Ski Show. As at 9 November, 65
per cent of 2011 budgeted licence fees have been contracted.
During October, the London Borough of Hammersmith & Fulham (LBHF) resolved to
grant planning permission for the expansion and enhancement of the Olympia
Exhibition Centre. The plans include redeveloping the West Hall within its
existing footprint but with an additional floor, and improved links to the Grand
Hall and Olympia 2. It is intended that works will be undertaken around existing
shows at Olympia commencing in early 2011 and scheduled to continue into 2012.
We have taken back control of Seagrave Road car park and intend to submit a
planning application during the first half of 2011. We have also acquired a
number of adjacent properties on Roxby Place.
Earls Court Masterplan
Plans for the Earls Court site continue to progress well and we remain on course
to submit a planning application in Q2 2011.
LBHF has included a comprehensive development of the Earls Court site within its
Draft Core Strategy Local Development Framework, subject to a consultation
process which is ongoing. The Royal Borough of Kensington & Chelsea (RBKC) has
acknowledged support for a significant development on the Earls Court site in
their draft Core Strategy.
Furthermore, a Statement of Common Ground on Earls Court has been agreed between
Capco, LBHF and RBKC in a submission to the London Plan consultation process.
This statement affirms that all parties support in principle a comprehensive
mixed-use development of substantial scale across the Earls Court opportunity
area.
The concept masterplan was completed at the end of September as planned and we
are on track for the public launch of the detailed masterplan in Q1 2011.
Consultation is ongoing with all key stakeholders including drop-in exhibitions
for the local community.
Great Capital Partnership
A refocusing of the Great Capital Partnership (GCP) on its West End holdings has
been agreed. Details have been announced today in a joint statement with Great
Portland Estates.
GCP has performed in line with expectations during the period. Asset management
activity in Q3 includes 25 letting transactions totalling GBP2.2 million of
rental value per annum (100 per cent) at approximately 2 per cent above June
2010 ERV. The estate has an occupancy rate of 97.5 per cent adjusted for areas
held for development and under offer as at 30 September. To date 96.7 per cent
of the September quarter`s rent has been received.
Other
We were pleased to be invited to participate in the selection process for the
appointment of a partner for the development of Lord`s Cricket Ground by the MCC
(Marylebone Cricket Club). This is potentially an interesting medium-term
opportunity for the Group should we be selected.
Our investment in the two China funds continues to perform well, and a partial
realisation of our interest may occur during 2011.
Capital Park, Cambridge, was sold during the period for GBP8 million, leaving
the Group with no material exposure outside our central London focus.
Finance
As at 30 September 2010, gross debt was GBP668 million and cash balance was
GBP183 million, resulting in net debt of GBP485 million (30 June 2010 GBP476
million). Based on 30 June 2010 property values, the 30 September 2010 pro forma
debt to assets ratio was 37 per cent (30 June 2010 36 per cent).
The weighted average debt maturity at 30 September 2010 was 3.3 years (30 June
2010 3.5 years) and the weighted average cost of gross debt was 5.9 per cent (30
June 2010 5.9 per cent) with 96 per cent of the debt hedged.
ENDS
Enquiries
Capital & Counties Properties PLC
Ian Hawksworth (Chief Executive) +44 (0)20 7887 7041
Soumen Das (Finance Director) +44 (0)20 7960 1210
Public relations
UK: Michael Sandler/Wendy Baker,
Hudson Sandler +44 (0)20 7796 4133
SA: Nicholas Williams,
College Hill Associates +27 (0)11 447 3030
A conference call for analysts is being held today at 9.00am UK time.
This press release includes statements that are forward-looking in nature.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
Capital & Counties Properties PLC to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements. Any information contained in this press release on the price
at which shares or other securities in Capital & Counties Properties PLC have
been bought or sold in the past, or on the yield on such shares or other
securities, should not be relied upon as a guide to future performance.
About Capital & Counties Properties PLC (Capco)
CAPITAL & COUNTIES PROPERTIES PLC is one of the largest companies that
specialises in central London real estate and is a constituent of the FTSE-250
Index. CAPITAL & COUNTIES PROPERTIES PLC holds 3.5 million square feet of assets
valued at GBP1.3 billion (as at 30 June 2010) in three landmark London estates:
Covent Garden London, which has assets valued at GBP592 million, including the
historic Market Building; Earls Court & Olympia Group and 50 per cent of the
Empress State building in Earls Court amounting to aggregate property assets of
GBP443 million; and the Great Capital Partnership, a joint venture with Great
Portland Estates, which holds prime West End properties with a total market
value of GBP540 million (Capco share GBP270 million). The company demerged from
Liberty International PLC, now Capital Shopping Centres Group PLC, in May 2010,
and is listed on the London Stock Exchange and the JSE Limited, Johannesburg.
9 November 2010
Sponsor:
Merrill Lynch SA (Pty) Limited
Date: 09/11/2010 09:02:01 Produced by the JSE SENS Department.
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