Capital sees progress despite tough retail climate

18th May 2011 10:44

Shopping centre owner Capital & Regional said it saw growth in underlying income in the first quarter of 2011 and that continued demand for value and fashion retailers is helping it to cope with the tough climate.Capital, which counts the budget fashion chains Primark and Peacocks among its main tenants, said occupancy levels declined slightly in the three months to 31 March, to 95% from 95.9%, in line with seasonal trends."Letting activity has gathered further momentum and the growth in underlying income has underpinned a further increase in property values across the UK fund portfolio," chief executive Hugh Scott-Barrett said.He said the challenging climate for its retail clients is set to continue."However, selective demand for space from value and fashion retailers in our shopping centres will continue to underpin income and support valuations in the second quarter."