Shaftesbury, the prominent commercial property firm with a focus on London, is displaying a positive outlook for its recovery and expects continuous growth in trading in the near future. Despite experiencing a brief disruption caused by the restrictions associated with the Omicron variant, the company has noted that visitors and office workers are gradually returning, indicating a favorable future. Shaftesbury owns prime real estate in London’s West End, including popular retail destinations like Carnaby, Covent Garden, and Seven Dials. The company’s trading performance during the period between October 2021 and February 2022 was boosted by increased confidence and activity in the weeks leading up to Christmas. With the diminishing short-term impact of Omicron on footfall, Shaftesbury is anticipating a sustained period of growth as visitors and office workers return, alongside improvements in international and business travel.
In addition, the company is pleased with the robust demand, occupancy levels, and rent collections it has observed. Occupier demand is rising across all usage types and locations, leading to a decline in vacancy rates and an improvement in rent collections. The vacancy rate for Shaftesbury’s property portfolio has dropped below 5% for the first time since the onset of the pandemic, and a significant majority of tenants (88%) have paid their rent up until December 31. To date, Shaftesbury has collected 77% of rents and expects further recoveries as footfall and trading activity bounce back.
During the quarter, the company completed leasing transactions with a combined rental value of £10.6 million, which included 33 new commercial lettings and 27 lease renewals, totaling £7.9 million. Rent levels have experienced a 14% increase, amounting to a total value of £1.4 million. Furthermore, Shaftesbury’s net debt has decreased by 1.1%, reaching £740.5 million.
Brian Bickell, the CEO of Shaftesbury, has expressed confidence in the company’s future prospects. With the lifting of restrictions, both visitors and the working population in the West End are gradually returning. The enduring appeal of the West End, combined with Shaftesbury’s carefully curated and affordable locations, will play a vital role in supporting the company’s revival and long-term resilience in the months and years ahead.
Useful links:
– Shaftesbury Official Website
– Covent Garden Official Website
