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Capital & Regional see 'positive leasing momentum' despite EU referendum

Leasing activity at London-based property manager Capital & Regional continued to grow in the first half of this year, despite the uncertainty and fallout from June’s EU referendum.

In the firm’s trading update, announced to the stock exchange this morning, the real estate investment trust, whose portfolio is primarily focused on shopping centres, saw ‘positive leasing momentum’ across its range of properties in a sign that Brexit worries are yet to hit the retail property sector.

Up to 30 June, Capital & Regional saw its contracted rent rise to £63.6m, an increase of 9.5% from the £58.1m it boasted in 31 December, driven primarily by the acquisition of The Marlowes in Hemel Hempstead.

The property firm also registered brisk leasing activity with 27 new lettings and 11 lease renewals worth £3m, with 12 of these leases and renewals occurring since the referendum.

Commenting on today’s results Hugh Scott-Barrett, Chief Executive, said: “Our operational performance has been strong in the first half of the year with a significant volume of new lettings highlighting the demand for good quality space at affordable rents in town centre locations.

“Although occupier markets may be sensitive to any changes in consumer spending which might arise against an uncertain backdrop, our footfall has remained resilient and the continuing momentum in letting activity since the result of the Referendum is encouraging.”

Today’s financials follow on from similarly heartening figures for NewRiver Capital yesterday, who also posted modest growth in the wake of the EU referendum, hinting that the wider commercial real estate market may be well-equipped to resist any economic uncertainty unleashed by the UK leaving the EU.

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