Shaftesbury’s Bickell: London’s West End is a ‘strong ecosystem’

Don’t ask his forecast for anything else – especially not Brexit. But when it comes to London’s West End, Shaftesbury’s outgoing chief executive describes himself as “remarkably optimistic”. For Brian Bickell, today’s results (29 November) were the last he will present to shareholders before Shaftesbury’s £3.5bn merger with Capco. The results show a powerful return to profit and rising income, following a period of challenges the likes of which Bickell says were “unimaginable” three years ago. Yet the bounce-back “in some ways doesn’t surprise me”, he says. “The West End has a unique mix. It is more than a shopping destination, more than a cultural destination. It has global appeal,” he enthuses. Having joined the business at its foundation 36 years ago and seen every step of its journey to become a long-term West End landlord focused on Carnaby Street, Chinatown, Soho, Covent Garden and Fitzrovia, Bickell is convinced that this unique blend will now offer a buffer against recession. “The UK consumer is under some pressure, but there are lots of comfortably off people too – people without mortgages, people whose savings are benefiting from higher interest rates,” Bickell says. And of course, those all-important global visitors. “London is the most visited tourist city in the western world. There’s still plenty of money around.” Amazing demand Shaftesbury came through the pandemic having kept all its occupiers in place and with very little vacancy. “It did cost us a lot in financial support, but it meant we could open very quickly again,” Bickell recalls. “We had the setback of Omicron last winter, but this year footfall has come back very strongly.” The company has remained focused on long-term rental growth, with 4-5% per annum compound being the target. This operational focus has paid off: compared with 2019 levels, Bickell says rents are only 5% down for leisure and 15% for retail, while offices targeted at medium-sized creative business and residential are both up. He describes demand for offices as “amazing”. “People want to be back with their colleagues and they want to go to the pub after work – you can see it when you walk around,” he says. Among its 630 flats, meanwhile, Shaftesbury might have one available on a bad day. All of this has fed into profit after tax of £119.1m for the year to the end of September, up £314m on its £194.9m loss last year. “It’s not quite job done,” says Bickell. But it’s coming close. “We make it fun, then people come. And we make people feel safe. CapCo works on a very similar principle of creating something interesting on the lower floors to bring people and other tenants in. We have always made it work,” Bickell says. United ownership Another huge plus, which Bickell urges those taking the business forward to remember, is that the West End works best as an “ecosystem”. “In most cities, you get completely fragmented ownership. Here we work together,” he says, with a nod to the landed estates as well as quoted propcos with which Shaftesbury is neighbour. “You need to be involved in the whole of the West End. It’s a strong ecosystem. You do need each other. You can’t be at each other’s throats.” He will remain at the business for a little while yet: the deal is expected to be signed off by the Competition and Mergers Authority in time to become effective in Q1 2023. Shaftesbury’s chairman Jonathan Nicholls and finance head Chris Ward will become the chairman and chief operating officer of the merged business, while current Capco boss Ian Hawksworth will hold the chief executive position. Shaftesbury executive directors Simon Quayle and Tom Welton who, like Bickell, have also been with the business for more than three decades, will also leave the company. “We’ll always be around but the future is theirs, not ours. You’ve always got to look ahead and be at the forefront of the business,” Bickell says. “They’ll make a great fist of it.” To send feedback, e-mail julia.cahill@eg.co.uk or tweet @EGJuliaC or @EGPropertyNews Photo © Shaftesbury