Landlord Shaftesbury, a prominent player in the London West End property market, has recently announced a strong performance for the fiscal year ending on September 30th. Despite facing obstacles posed by the uncertain UK economy, the company has demonstrated resilience. With a significant 5.2-acre portfolio in prime locations, Shaftesbury has observed a rise in demand for smaller retail units, as larger brands approach the market cautiously amidst Brexit uncertainties and decreasing consumer confidence.
Despite the current challenges, the management at Shaftesbury remains positive about the enduring appeal of the West End as a global hub for businesses and consumers alike. The diverse and extensive nature of their property portfolio is projected to serve as a protective buffer against economic downturns, ensuring stability for the company and its shareholders.
Financially, the group has seen a 4.5% increase in net property income to £98m, supported by a 4.9% boost in rental income. However, the pre-tax profit experienced a notable decline from £175m in the previous year to £26m in 2018 due to revaluation deficits. Nonetheless, the company expresses confidence in its ability to navigate through turbulent times and emerge stronger.
CEO Brian Bickell highlights Shaftesbury’s success in creating distinctive and thriving destinations by combining authentic experiences with innovative offerings. The continual adaptation of buildings to meet evolving trends, occupier demands, and environmental standards has been critical to their sustained success.
Shaftesbury’s portfolio primarily focuses on renowned areas like Carnaby Street, Seven Dials, and Chinatown, with additional ownerships in East and West Covent Garden, Soho, and Fitzrovia. The company has witnessed robust demand from both local and international occupiers, leading them to reconfigure and divide units to meet the needs of budget-conscious brands. This approach has resulted in reduced fit-out costs and accommodation expenses for tenants, ensuring a steady stream of occupiers for Shaftesbury’s properties.
In summary, despite the turbulence in the economic landscape, Shaftesbury continues to uphold its commitment to providing unique and vibrant spaces in London’s West End. Their capacity to adapt to market fluctuations and generate valuable opportunities for occupiers underscores their resilience and forward-thinking approach in the property industry.
For more information on Shaftesbury’s portfolio and performance, visit their official website here. Additionally, for insights into the latest trends in the London property market, check out this informative article here.
