Following its merger with Capco on November 27th, Shaftesbury Capital, the property giant, recently held its first investor event at the Royal Opera House in Covent Garden. The purpose of the event was to provide shareholders with an update on the company’s performance. CEO Ian Hawksworth expressed optimism about the future, highlighting that the company’s strong performance has continued into the second half of the year and the Christmas trading period has started off robustly. He expects rental growth to average at 5-7% annually over the medium-term.
Shaftesbury Capital attributes its success to its core West End property portfolio, which it describes as one of the most vibrant global destinations with a wealth of entertainment and cultural attractions. The company’s properties in Covent Garden have seen recent brand activations, such as Marc Jacobs and Sézane, and the customer lineup across the portfolio has been enhanced with new luxury brand openings like Hublot, Messika, and Girard-Perregaux in Covent Garden’s Royal Opera House Arcade.
During the investor event, Shaftesbury Capital highlighted several positive factors. One key factor is the high footfall across its prime portfolio, which indicates strong customer traffic. The Christmas trading period has started strongly, with customers reporting sales 12% higher than in 2022 and 16% higher than in 2019. This demonstrates the continued demand for the company’s properties. Additionally, there has been significant demand for space, as evidenced by 220 leasing transactions totaling £15.6 million of rent in the second half of the year, representing a 6% increase compared to June. Furthermore, vacancy rates remain low at just 2.2% available to let, indicating a healthy occupancy level.
Hawksworth emphasized the resilience and appeal of Shaftesbury Capital’s prime West End portfolio, even in the face of an uncertain macroeconomic environment. With a strong balance sheet and access to approximately £500 million of liquidity, the company is confident in its ability to deliver further growth and attractive returns as the leading central London mixed-use REIT.
To further enhance its financial position and provide additional resources for future endeavors, the company’s balance sheet will show £82 million of completed asset disposals, which is 12% higher than its valuation in June. This highlights Shaftesbury Capital’s commitment to continuously improving its financial standing.
Useful links:
1. Shaftesbury Capital Official Website
2. Capco Official Website
