Apple will add to Covent Garden core factor

Covent Garden market is booming, with footfall and tenant levels higher than a year ago and the picture expected to brighten even further when Apple moves in next year, owner Liberty International said today.

The company's chief executive David Fischel said that the central London shopping area was "in its best shape" since Liberty bought the estate for £421 million three years ago.

"Occupancy at Covent Garden is higher than 99%, up from about 90% in 2006," he said.

"Footfall in the third quarter was higher than the same time last year and the tenant profile is picking up all the time, with upmarket brands like Kurt Geiger moving in, bringing more tourists and more Londoners to the area."

Fischel said that the Covent Garden area would receive a further boost when a "major international tenant" opened a store that would be a "tremendous draw" for shoppers next year.

That is Apple, which is opening its second central London branch there in February.

Liberty added that it was setting aside some of the £280 million it raised from a cash call last month to go shopping.

Specifically, the company intends to invest in "fill-in acquisitions" around the central market at Covent Garden, as well as refurbishing some of existing estate.

The UK's biggest retail landlord said that the British property market had recovered since its low point at the end of June, with confidence "returning gradually".

The landlord said its shopping centres, including the flagship mall at Lakeside in Thurrock, were also trading well.

Liberty said occupancy at its shopping centres had edged upwards to 98.9% in the four months to November, in part because of a fall in the number of tenants going bust.

Only 20 units — making up £3 million of Liberty's rental income — were affected by retailers going into administration in the third quarter, compared to the 125 shops making up £19.3 million in the first six months of the year.

Fischel added that the number of tenants showing "signs of distress" was lower than last winter's "exceptional level".

Liberty shares rose 7½p to 439¾p.