Shaftesbury, a well-known London property owner, is seeing a surge in business following the pandemic, leading to the expansion of its prestigious property portfolio. CEO Brian Bickell is hopeful about the upcoming summer season and expects a prolonged period of uninterrupted trading. The company owns 16 acres of prime real estate in London’s West End, including popular retail destinations like Carnaby and Covent Garden.
As of March 31st, Shaftesbury’s portfolio valuation has risen to £3.26 billion, compared to £3.01 billion the previous year. This represents a like-for-like growth rate of approximately 7.5% over a six-month period beginning on October 1st, 2021. The portfolio’s value had also increased by 5.2% in the prior six months leading up to September 30th, 2021. This growth can be attributed to the increased demand for rental properties as operating conditions continue to recover.
The rise in valuation was primarily fueled by a like-for-like estimated recovery value (ERV) growth of 6.4%. Shaftesbury experienced increases in all areas of property usage, indicating strong demand from occupiers and low vacancy rates. As footfall and trading in their locations steadily approach pre-pandemic levels, the company expects the positive trend to continue. Moreover, the improved investor sentiment and a robust occupational market have caused the portfolio’s equivalent yield to tighten, reflecting the growing confidence in Shaftesbury’s properties.
Brian Bickell highlighted the growing confidence, footfall, and sales in Shaftesbury’s retail destinations, commonly referred to as villages. The high demand from potential occupiers across various sectors and the low vacancy rates have led to a recovery in rental prices, which is the main driver behind the portfolio’s increased valuation. Bickell remains optimistic about the future, as the demand-supply tension in their locations indicates favorable market conditions.
Shaftesbury’s positive outlook and rising valuation showcase the resilience of London’s property market despite the challenges posed by the pandemic. The company’s prime real estate assets in iconic areas of the West End continue to attract both occupiers and investors. As business conditions steadily improve, Shaftesbury anticipates further growth and success in the coming months.
Useful links:
1. Shaftesbury Official Website
2. West End Independent – News and Insights
