Merger in the pipeline as Shaftesbury reports strong occupier trading
Real estate investment trust (REIT) Shaftesbury has said it expects a merger with fellow REIT Capital & Counties (Capco) to finalise in the current quarter.
On December 23 2022, the Competition and Markets Authority announced the launch of its phase one review into the merger, with a deadline for a decision set for February 22.
This comes as the real estate investment trust revealed a strong period of occupier turnover in the run up to Christmas. In its trading period for October 1 to December 31, Shaftesbury’s occupier turnover rose by 42% against 2021 levels, and was 6% higher than pre-Pandemic rates in 2019.
Shaftesbury also saw leasing transactions with the rental value of £8m completed in the quarter.
The REIT said that by the end of 2022 its wholly-owned portfolio was worth £3.1bn.
It added that a sustained recovery in footfall and trading seen in 2022 continued into the Christmas and New Year period. Domestic visits to its villages were flat against December 2021, having been affected by rail strikes, but footfall was buoyed by continued growth in international tourist numbers.
Shaftesbury said across its portfolio, its occupiers had outperformed the wider West End.
Brian Bickell, Shaftesbury chief executive, said: “London’s West End has seen buoyant footfall and trading throughout the important festive period, with occupier trading, on average, ahead of levels seen prior to the pandemic. This strong performance is in stark contrast to the more subdued spending and consumer confidence reported nationally.”