Improving market sees Shaftesbury Capital set eyes on expansion
Shaftesbury Capital has said it is looking at opportunities to expand and add to its growth prospects amid an “improving market backdrop”.
The real estate investment trust – which has a London-based portfolio focused on Covent Garden, Carnaby, and Chinatown – said demand for West End real estate is strong, adding that the area has continued to attract investment from international and domestic investors.
The REIT also said that it has seen high footfall, a growth in customer sales, and limited vacancy across its portfolio, aided by “excellent” levels of leasing activity, a good pipeline, and a number of customers upsizing across its estate.
The group expects continued performance in rents and valuation which it said are well underpinned and are positioned for further growth.
This comes as the REIT releases its half-year report for the six months ending 30 June, a period during which the value of its wholly-owned property portfolio increased by 1.4% on a like-for-like basis to £4.8bn, equivalent to an average of approximately £1,764 per sq ft.
During the period, the group completed 217 leasing transactions, representing £28.1m of contracted rent. This was 7% ahead of December 2023 estimated rental value and 16% ahead of previous passing rents.
Shaftesbury Capital has also completed £216m worth of disposals completed since the merger between Shaftesbury and Capco in March 2023, with £86m reinvested in acquisitions to improve the quality of its portfolio.
Ian Hawksworth, chief executive of Shaftesbury capital, said: “We are very pleased with performance across the business. Having set clear priorities, we are delivering on strategy. Conditions across the West End’s occupational and investment markets continue to improve. Our strong leasing activity at rents on average 7 per cent ahead of December 2023 ERV is delivering rental growth and increased valuations. With a strong balance sheet, we are well-positioned to generate rental growth and take advantage of market opportunities.”
In May, Shaftesbury Capital said it had seen “strong” retail and hospitality leasing demand across its London portfolio in 2024. Recent additions include Charlotte Tilbury, Alo, ELEMIS, Odd Muse, Missoma, Axel Arigato, ERGON House, PANGAIA, and SanHao.