West End landlord Shaftesbury has collected 41% of rent due since 1 April, equating to £23.5m.
The West End landlord said a further £12.9m (23%) was being waived and £5.8m (10%) was subject to deferred collection arrangements, with £15.1m (26%) outstanding as of 11 September.
Most of its 611 restaurants, cafés, pubs and shops are now open, but due to the new restrictions being put in place by the government and the low footfall in the West End, Shaftesbury said in a trading update it was extending its support packages until the end of the year.
The vacancy rate across the firm’s 16-acre estate rose to 9.7% by the end of August, up from 4.8% at the end of March.
Shaftesbury said 46% of this vacancy increase stemmed from the 622 flats it owns with 136 becoming vacant as foreign occupiers returned to their home countries, while demand from long-stay business and leisure travellers had stopped due to the coronavirus pandemic.
Shaftesbury added in the update that it had secured interest covenant waivers for periods of nine and 12 months starting from April 2020, where required, and that discussions were now under way to extend the duration of these.
The firm has decided not to declare a final dividend.
However, despite the ongoing of impact of Covid-19 the business has managed to acquire three buildings in Carnaby and Berwick Street for a total of £13.3m and said it was seeing more properties of strategic interest coming to the market.
Brian Bickell, chief executive of Shaftesbury, said: “The course of the pandemic in the short and medium term will continue to dictate the extent of restrictions imposed by the UK and other governments to contain the spread of the Covid-19 virus, with implications for the global economy and the pace of recovery. As an international destination, local trading conditions in the West End will inevitably be affected by these macro uncertainties.
“Longer term, the exceptional qualities and features of London and the West End provide firm foundations for recovery as pandemic disruption recedes. Their long history of embracing change, dynamism, creativity and their enduring global appeal will be their most important strengths in a post-pandemic world of new priorities, expectations and patterns of activity.
“Against this backdrop, and with the benefit of our experienced, entrepreneurial and innovative management team, we remain confident in the long-term prospects for our exceptional portfolio and business.”
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