| Thu 5 May 2011, 8:00 | | 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 January to 5 May 2011
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
5 May 2011
CAPITAL & COUNTIES PROPERTIES PLC
INTERIM MANAGEMENT STATEMENT
FOR THE PERIOD 1 JANUARY TO 5 MAY 2011
Highlights
- The repositioning of the Covent Garden estate continues apace with the
opening of Burberry Brit in April 2011, and further key store openings due
throughout the year including Rugby Ralph Lauren, Laduree and Links of
London
- Good progress has been made with the conversions at 34 Henrietta Street and
the Flower Cellars (for Balthazar)
- The public launch of Sir Terry Farrell`s masterplan for the Earls Court &
West Kensington Opportunity Area (ECOA) was well received with over 1,000
visitors attending the exhibition
- The supplementary planning document for the ECOA was published for
consultation in March by the London Borough of Hammersmith & Fulham, the
Royal Borough of Kensington & Chelsea and the Greater London Authority
Covent Garden
The positive momentum generated in Covent Garden in 2010 has continued with the
openings of Burberry Brit on King Street and Liam Gallagher`s fashion concept
Pretty Green on the East Piazza. This affirms the estate as the new destination
for contemporary luxury in the West End.
With a number of additional openings including Rugby Ralph Lauren, Links of
London, Laduree and Balthazar anticipated throughout the year, demand remains
strong from high quality retail and restaurant brands with offers at or above
ERV being received for available space. Letting transactions in 2011 to date
have been concluded at an average of 2.6 per cent. above ERV at the point of
lease activity. In addition discussions are advanced with an international brand
for a new concept for the second retail unit which will be created from the site
previously occupied by Ponti`s. Footfall for the 12 month period from April 2010
to March 2011 was 45.4 million. The EPRA adjusted occupancy rate for the estate
was 96.4 per cent. as at 31 March 2011.
Work is due to start on site at the Flower Cellars, to transform this for
Balthazar, in May and ongoing improvement works to the Market Building and the
public realm continue.
Construction continues at 34 Henrietta Street to create the first four premium
apartments under the Covent Garden Living brand. The work is on track and due to
be completed in December. Expressions of interest have already been received for
the three large scale units and a penthouse and demand is expected to be strong
when they are delivered to market. A planning application has been made to
create a further four apartments in Russell Chambers, another high profile site
overlooking the piazza.
Plans for the recently acquired 1a Henrietta Street are also taking shape to
create a new flagship commercial and residential space anchoring the south west
corner of the piazza. A planning application for the scheme will be made in the
second half of the year.
Earls Court & Olympia
The events business has had a good first quarter with 82 per cent. of the annual
budgeted licence fees contracted as at 31 March 2011. The International Gaming
Exhibition, Toy Fair and the Retail Business Expo were notable successes and
performed over budget. However, certain shows, including BETT and Top Gear Live,
have been lost reflecting the competitive nature of the market.
In February, Emap achieved a first taking over both Earls Court and Olympia, and
in March the reinvigorated Ideal Home Show brought over 270,000 visitors to
Earls Court. This year`s highlight was `The Prince`s House`, HRH The Prince of
Wales`s eco-living concept, a low carbon home made from natural and recycled
materials.
At Olympia, construction on the new 90,000 sq ft exhibition space to replace the
West Hall continues on time and on budget.
ECOA masterplan
The planning process for the Earls Court & West Kensington Opportunity Area
(ECOA) has seen an active start to the year and has continued to progress well.
An exhibition to launch Sir Terry Farrell`s masterplan for the ECOA was held at
Earls Court and was visited by over 1,000 people from the local area including
residents, businesses, amenity groups and students from local schools and
universities. Community stakeholders were able to view a range of new and
improved social and physical infrastructure solutions and discuss the overall
benefits of the scheme with members of the project team. The masterplan was
published online at our consultation website myearlscourt.com to coincide with
the exhibition.
A major milestone for the ECOA in the period included the publication for
consultation of the site specific planning guidance document (the Supplementary
Planning Document) by the London Borough of Hammersmith & Fulham (LBHF), the
Royal Borough of Kensington & Chelsea and the Greater London Authority. The
first stage of consultation concluded in April, coinciding with the conclusion
of the LBHF Core Strategy Examination in Public. The Mayor of London confirmed
in a press release on 3 May 2011 that the Planning Inspectorate has reported on
the draft Replacement London Plan, which includes ECOA as an opportunity area
suitable for comprehensive development, concluding that it offers "a sound basis
for planning"; the Plan will now be submitted to the Secretary of State for
approval.
Negotiations are progressing with Transport for London (TfL) in respect of the
re-gearing of Capco`s long leasehold interests at Earls Court and also with TfL
and LBHF in respect of future development rights over the ECOA. We remain on
track to submit planning applications by the end of June.
The Great Capital Partnership
The Partnership continues to benefit from its focus on London`s West End showing
modest growth in both rental and capital values. Occupancy levels have reduced
to 92.1 per cent., as at 31 March 2011, principally as a result of a lease
expiry during the quarter. The sale of 201/207 Kensington High Street, for cash
consideration of GBP12.8 million (Capco`s share GBP6.4 million) was completed in
April. Further divestments of mature non-core assets are under consideration.
Other
The realisation of our investments in China continues with a number of
contracted sales now completed. These sales released approximately GBP5 million
in the first quarter and GBP32 million in April 2011. Further sales have been
contracted and are planned to complete over the next 12 months.
Finance
As at 31 March 2011, gross debt was GBP644 million and the cash balance was
GBP158 million, resulting in net debt of GBP486 million (31 December 2010 GBP476
million). Based on 31 December 2010 property values, the 31 March 2011 pro forma
debt to assets ratio was 35 per cent. (31 December 2010 35 per cent.).
Following the 12-month extension agreed in February 2011 to the facility secured
over Earls Court & Olympia, the Group`s weighted average debt maturity at 31
March 2011 was 3 years (31 December 2010 3 years) and the weighted average cost
of gross debt was 5.9 per cent. (31 December 2010 5.9 per cent.) with 96 per
cent. of the debt hedged into fixed interest rates.
As at 31 March 2011 Capco had capital commitments of GBP35.7 million.
ENDS
Enquiries
Capital & Counties Properties PLC
Ian Hawksworth Chief Executive +44 (0)20 3214 9188
Soumen Das Finance Director +44 (0)20 3214 9183
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 08:30 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)
CAPCO is one of the largest investment and development property companies that
specialises in central London real estate and is a constituent of the FTSE 250
Index. CAPCO holds 3.3 million square feet of assets valued at GBP1.4 billion
(31 December 2010) in three landmark London estates: Covent Garden, which has
assets valued at GBP640 million, including the historic Market Building; Earls
Court & Olympia Group and 50% of the Empress State building in Earls Court
amounting to aggregate property assets of GBP481 million, and The Great Capital
Partnership, a joint venture with Great Portland Estates, which holds prime West
End properties of which CAPCO`s share is GBP260 million. The company is listed
on the London Stock Exchange and the JSE, Johannesburg.
www.capitalandcounties.com
Sponsor: UBS South Africa (Pty) Ltd
Date: 05/05/2011 08:00:38 Produced by the JSE SENS Department.
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