Shaftesbury Capital has “excellent” momentum following merger

3rd August 2023 | Jack Oliver

Shaftesbury Capital has said it saw “excellent operational momentum” in the first half of the year, boosted by high footfall and positive trading activity.

The group, which has a portfolio spanning Central London and the West End, said it had seen “strong demand for all uses, excellent leasing activity and low vacancy”.

The real estate investment trust (REIT), which was formed in March following a merger between Shaftesbury and Capco, said that high footfall across the West End had been buoyed by increasing international visitor numbers.

In the six months to 30 June, Shaftesbury Capital said it had completed 220 leasing transactions with a rental value of £15.1 million, including 89 commercial lettings and renewals. It said its estate had seen a low vacancy rate, with 2.5% of estimated rental value (ERV) available.

The group also added 27 retail and hospitality concepts across its portfolio.

During the period, Shaftesbury Capital saw a 3.3% like-for-like increase in estimated rental value across its estate to £235 million, and an increase in annualised gross income of 5.6% to £188 million.

The REIT said the valuation of its wholly-owned portfolio remained unchanged at £4.9 billion.

Ian Hawksworth, Shaftesbury Capital chief executive, said: “We have had an excellent start as a newly merged company, creating the leading central London mixed-use REIT. The team has come together to deliver strong performance with growth in annualised rent and ERV with a strong pipeline of demand for the second half. Despite the challenging macroeconomic backdrop, valuations are unchanged reflecting the resilience of our exceptional portfolio.”

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