NINETY-nine percent of Capital & Regionals’ retail tenants were trading and footfall has been robust since the easing of pandemic restrictions, the group says in a trading update.
On Friday, the chief executive of the UK convenience and community focused shopping centre REIT, Lawrence Hutchings, said they continued to see the benefits of the reopening of the economy, and many of their retailers were reporting strong sales and consumer engagement, even though access to stores had to be restricted at peak times to maintain physical distancing.
That meant there was additional scope to improve sales and footfall as restrictions eased further, he said.
Footfall in the eight weeks since the reopening of non-essential retail in the UK on April 12 had risen from about 30 percent beforehand to the equivalent of about 72 percent of the corresponding weeks in 2019.
“We have now collected 70 percent of 2021 rents due and have agreed outline deals with a number of occupiers,” he said.
The 2020 rent collection figure had reached 84 percent.
“We continue to support both our smaller and our independent retailers as necessary,” said Hutchings.
Occupancy was robust at 89 percent, including the closure of three Debenhams stores. Discussions with several potential occupiers interested in leasing the three units were progressing well, he said.
“We are continuing to benefit from our focus on independent retailers with some 38 deals completed to the end of May, in aggregate above previous passing rent… and a further 35 currently in solicitors’ hands.
“While there are many learnings from the past 18 months we are confident that both consumers and retailers share a need for well-located, accessible community retail and services with affordable occupancy costs, supporting our community centre strategy and our belief in the 15 minute neighbourhood.”
The group had £74.3 million (about R1.5 billion) cash on balance sheet, equivalent to more than one year’s gross revenue, at May 31.
edward.west@inl.co.za
BUSINESS REPORT ONLINE