Shaftesbury Capital: West End estates “busy and vibrant” going into Christmas
Shaftesbury Capital has said that its West End estates are “busy and vibrant” ahead of the Christmas period.
This comes as the real estate investment trust – which has properties across Covent Garden, Carnaby, Soho, and Chinatown – provides a trading update for the second half of the year.
Since July, the group has welcomed 48 new retail and hospitality openings across its estate. In Covent Garden, outdoor brand Peak Performance made its UK debut on Long Acre, whilst Swiss watchmaker Longines and English heritage brand Aspinal are set to open on James Street and in the Market Building respectively.
In Seven Dials, eight new brands have been introduced since July, including sustainable menswear brand NN.07, boutique retailer Saint + Sofia, and apparel concept Gandy’s International.
In the Carnaby Street area, Shaftesbury Capital has welcomed 17 signings over the recent months, including Brazilian fashion brand Farm Rio and lifestyle brand Barbour. Contemporary jeweller Astrid & Miyu has opened a flagship store on Foubert’s Place, sports brand Saloman has opened on Broadwick Street, whilst Australian beauty brand Grown Alchemist has selected Soho for its first store.
A number of new tenants have also added to the group’s hospitality portfolio in Soho in recent months. At Kingly Court, Mediterranean concept Alta has signed following the redevelopment of units across two floors, creating a larger dining space. Cheesecake specialist La Maritxu signed for a unit on Kingly Street, whilst the opening of Donutelier has introduced al fresco food on Carnaby Street at the gateway to Kingly Court. Mediterranean concept Delamina opened in Covent Garden, whilst Suzhou Noodle and Noodle & Beer are set to open new restaurants in Chinatown.
In total, Shaftesbury Capital has completed £15.9m of new leases and renewals to date during the second half of the year. These were completed at 9% ahead of the June 2024 estimated rental value (ERV) and 7% ahead of the previous passing rent.
The group’s portfolio now has a vacancy rate of 2.1% of ERV available, down from 2.7% in June.
Shaftesbury Capital also said that the investment market has been more active for smaller lot sizes in the core West End market, with transactions demonstrating increased demand for high-quality Central London real estate.
Since the merger between Shaftesbury and Capco in March 2023, the group has realised £240 million from asset sales, £152 million of which was completed this year to date.
The REIT said that £86 million has been reinvested in targeted acquisitions to date, with disposal proceeds to be used for general corporate purposes, investment in its portfolio, and to take advantage of future opportunities. Shaftesbury Capital said the pipeline of asset acquisitions is “encouraging”, with a number of buildings currently under review.
Ian Hawksworth, chief executive of Shaftesbury Capital, said: “Our West End estates are busy and vibrant coming into the Christmas trading period with high footfall and good customer sales growth. We are encouraged by the strong leasing demand across all uses, with 192 transactions completed in the period, at rents on average 9 per cent ahead of June ERV and an excellent leasing pipeline.
“We have completed £240 million of asset sales over the last 18 months and will continue to recycle capital into target acquisitions. We are well-positioned to deliver attractive long-term returns as the leading central London mixed-use REIT.”