One of the West End of London’s biggest retail landlords, Shaftesbury Capital, issued a trading update on Thursday saying it’s continuing to see strong demand for its properties.
The company controls key areas such as Carnaby Sreet, much of Soho and Covent Garden.
CEO Ian Hawksworth cited year to date “positive trends in footfall and sales, high occupancy and leasing activity overall 8% ahead of December 2024 ERV [estimated rental value]. Customers recognise the exceptional features of London’s West End with broad appeal to domestic and international businesses and visitors.
“The establishment of our long-term Covent Garden partnership with NBIM [Norges bank] enhances growth and expansion opportunities across our portfolio whilst strengthening our financial position and providing significant optionality to the group. We have a strong balance sheet and, despite current macroeconomic uncertainties, we are well-positioned to capitalise on further market opportunities in London’s West End, delivering long-term sustained income and value growth for our shareholders.”
Recent months have seen strong occupational demand with 128 leasing transactions, representing £11.3 million of new contracted rent. The annualised rent roll has increased 3% since year end on a like-for-like basis, reaching £210 million. And it’s seeing high occupancy with only 1.7% of ERV available to let compared to 2.6% at the end of last year.
And the completion of the £2.7 billion long-term partnership with NBIM in respect of the Covent Garden part of its estate means around £570 million of cash proceeds provides “financial flexibility for enhanced investment and expansion opportunities”.
It has made £34 million of acquisitions across the portfolio in the year so far, “presenting excellent asset management and rental growth opportunities”.
The aforementioned completed 128 leasing transactions include Covent Garden signings such as Charlotte Tilbury, Alo and Dolce & Gabbana, alongside lettings to Swatch on James Street, Sunspel on Floral Street, Thule on Neal Street and social gaming experience Spyscape, which will open its debut UK location on Wellington Street.
Recent signings on Carnaby Street include digitally native brand TALA, which is set to open its first store, joining Farm Rio, Missoma and Korean beauty store PureSeoul.
There have also been a number of openings across Soho including Autry (only this week), De La Vali and Reign Wear.
The company said its extensive marketing programme focusing on the consumer calendar continues to support the footfall and sales growth in its destinations. During the period, it hosted successful Chinese New Year festivities and events around the Easter trading period as well as several brand partnerships including Chanel on Covent Garden’s Piazza.
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