West End landlord Shaftesbury Capital cheers low vacancy rates in boost for London

West End landlord Shaftesbury Capital reported positive earnings and low vacancy rates during the full year.

In a trading update, the group, which owns 2.9 million square feet of lettable space across Soho and Covent Garden, said 526 leasing transactions were completed in the full year, representing £37m of rent.

As of last December, the firm said it has £3.4bn worth of total equity up from £1.5bn in the same period the year before.

Vacancy rates were also low, sitting at 2.1 per cent of estimated rental value available to let.

Speaking this morning, chief of the firm Ian Hawksworth, said: “There is a broad pool of investors attracted to prime West End real estate as demonstrated by recent sales totalling £145m  at a premium to valuation.

“It has been an excellent start for Shaftesbury Capital, with positive metrics delivered across the business.

“We set clear priorities and are pleased with the pace and performance over the first year with significant rental income growth and cost savings driving financial performance.”

Two years ago, Shaftesbury merged with fellow West End landlord Capco, creating a giant with £4.9bn of property and 2.9m square feet of lettable space across 670 buildings.

The firm said the West End is continuing to attract target brands and concepts, as it wins back shoppers and businesses following on from the pandemic.

The board said: “The West End, and particularly our portfolio, is a destination of choice for both market entry and expansion. It is a strong retail leasing market with units often attracting interest from multiple occupiers.

“Availability of restaurant and leisure space is very limited given the strong trading prospects together with constrained planning and licensing policies. “