Shaftesbury buoyed by West End performance going into Christmas

Ian Hawksworth, chief executive at Shaftesbury Capital, has said the company is “well-positioned” with strong demand in the West End and a slew of recent disposals amounting to £334m. Hawksworth expressed confidence in a trading update on the REIT’s West End portfolio this morning. “We are encouraged by the strong leasing demand across all uses, with 192 transactions completed in the period, at rents on average 9% ahead of June ERV and an excellent leasing pipeline,” he said. The company has seen strong leasing across retail and hospitality and “particularly positive performance” in Soho, with Kingly Court attracting interest from multiple operators, including Mediterranean restaurant Alta and cheesecake specialist La Maritxu. Its office portfolio also saw “positive leasing momentum”, with rents over £100 per sq ft and strong interest in Covent Garden and Soho. Shaftesbury’s residential portfolio “continues to let well” amid rental growth and limited vacancy, with nine units available. Hawksworth added that £240m of asset sales over the past 18 months freed up capital, which the company would “continue to recycle into target acquisitions”. Last month, the company sold its half of Longmartin Properties to joint venture partner the Mercers’ Company for £94m, after Shaftesbury’s merger with Capital & Counties Properties triggered the Mercers’ right to require it to offer to sell its shares. The REIT has already reinvested £86m in targeted acquisitions in “asset management opportunities on core streets with excellent rental growth prospects”. The trading update described the pipeline of further acquisitions as “encouraging, with a number of buildings currently under review”. Image from Shaftesbury Capital