High occupancy rate drives rental growth for Shaftesbury Capital
Shaftesbury Capital, the Central London-based real estate investment trust (REIT), has achieved strong rental growth across its portfolio in 2025, driven by high occupancy rates.
Since the beginning of the year, the group has completed 128 leasing transactions, representing £11.3m of new contracted rent. This figure was 8% ahead of the December 2024 estimated rental value (ERV) and 9% ahead of previous passing rents.
Since 2024, the REIT’s annualised rent roll increased by 3% on a like-for-like basis to £210m.
This has been driven by low vacancy rates, with only 1.7% of ERV within the portfolio available to let.
These high levels of occupancy have been bolstered by new openings and lettings across Shaftesbury Capital, with highlights including Nespresso, Dolce & Gabbana, Autry and Farm Rio.
Ian Hawksworth, chief executive of Shaftesbury Capital, said: “There continues to be strong demand across our West End portfolio with positive trends in footfall and sales, high occupancy and leasing activity overall 8 per cent ahead of December 2024 ERV. Customers recognise the exceptional features of London’s West End with broad appeal to domestic and international businesses and visitors.”
In April, Shaftesbury Capital entered into a long-term partnership with Norges Bank Investment Management (NBIM), the Norwegian sovereign wealth fund, which saw NBIM acquire a 25% non-controlling interest in the Covent Garden estate for approximately £570 million. The REIT said that there are a range of options to deploy the proceeds, including acquisitions, asset management and repositioning opportunities, and repayment of outstanding debt.
Hawksworth continued: “The establishment of our long-term Covent Garden partnership with NBIM 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.”