"West End's long-term appeal" secures strong performance for Shaftesbury

Real estate investment trust Shaftesbury PLC has reported a strong performance in the first half of this financial year despite political and economic uncertainty.

In a trading update covering the period between April 1 and September 24 this year, the firm has reported a strong performance “largely unaffected by high-profile retail and restaurant failures”.

Shaftesbury, which owns a 15.2 acre portfolio of properties across London’s West End, has completed £34.9m worth of new acquisitions since April 1.

The firm’s food, beverage and leisure businesses have on average had year-on-year sales growth in spite of market difficulties, and account for 38 per cent of Shaftesbury’s income - a 10 per cent increase over the past decade.

In addition, the firm has maintained ‘robust’ leasing activity, with tenant insolvencies accounting for less than 2 per cent of Shaftesbury’s portfolio ERV (estimated recovery value).

With currently 40 schemes underway across the city, including a 77,100 sq ft mixed-use development currently under construction at 72 Broadwick Street, the company is confident in its ability to withstand difficult market conditions and political uncertainty.

Brian Bickell, Shaftesbury’s chief executive, commented: “Our exceptional 15.2 acre portfolio, located in some of the busiest parts of the West End, continues to perform well.

“The small to medium-sized space we mostly provide, combined with our modest rental levels, are a considerable advantage in the current market, attracting good levels of interest.

“Our long-established tenant selection strategy has ensured that we have been largely unaffected by high-profile retail and restaurant failures and restructurings.

“Despite the uncertain political and macroeconomic backdrop, London’s global city status continues to draw businesses and visitors from across the world, reinforcing the West End’s long-term appeal and prospects.”