// Capital & General have reported a 4.5% drop in value in the second half
// It said “negative sentiment towards retail assets” was to blame
// It is in an “ongoing dialogue” with Debenhams, which accounts for 5.8% of its total income
Debenhams is reportedly in “ongoing dialogue” with landlord Capital & Regional about the resizing of its store estate, as it blames its retail assets for a drop income.
In the second half of 2018 the property investment group Capital & Regional said the value of its portfolio had dropped 4.5 per cent to £855.3 million, which it blamed on “negative sentiment towards retail assets”.
Debenhams, which announced plans to close 50 stores and reduce the size of others last year, reportedly accounts for 5.8 per cent of Capital & Regional’s total income.
The groups are understood to be engaged in continuing discussions about “right sizing” Debenhams’ stores within its portfolio.
Capital & General was reportedly affected by over 20 CVAs and retailer restructurings last year, reducing the group’s net rental income by £1.5 million.
Despite this it expects income to be flat on last year, and it added that footfall across its portfolio was up 0.7 per cent, well outperforming the national average of a 3.7 per cent drop.
The news sent the landlord’s shares falling four per cent in morning trading.