Shaftesbury predicts West End economic revival as ‘holistic villages’ take shape

Real estate specialist Shaftesbury has said it expects occupier demand to increase in its West End properties.

In the firm’s results for the six months ended March 31, net property income was down 42.6 per cent on the previous year to £26.5m, which the firm has attributed to reduced rent collections and increased vacancy.

Despite the income drop, the company is optimistic about returning to growth, and has resumed an interim dividend for shareholders as well as signing transactions with a rental value of £14m across the period.

Brian Bickell, Shaftesbury chief executive, commented: “After more than a year of unprecedented disruption, a revival in the West End’s broad-based economy is now underway. Since the start of re-opening on 12 April, we are seeing an encouraging increase in demand for space and lettings and a return of footfall and spending across our locations.

“We expect occupier demand to improve further as businesses seek to locate in our lively, holistically-curated villages. Importantly, the inherent flexibility in our portfolio, and our culture of innovation, will ensure we can continue to adapt our buildings to meet the fast-changing expectations of our occupiers.

He continued: “As the global pandemic recedes, we are confident that the unique appeal and features of London and the West End will continue to attract businesses and visitors on a scale matched by few other cities, underpinning the long-term resilience and prospects of our portfolio.

“With our proven, ever-evolving strategy, guided by our experienced, enthusiastic and entrepreneurial team, and supported by a strong financial base, Shaftesbury is well placed to return to sustainable long-term growth.”