Landlord Shaftesbury Capital has said tenant demand for space is strong, as it revealed businesses across its huge West End estate are seeing sales ahead of pre-pandemic levels.
The FTSE 250 company was created earlier this year through the £5 billion merger of Capco and Shaftesbury. The group now owns around 670 buildings home to shops, bars, restaurants and offices in Covent Garden and parts of Chinatown and Carnaby Street.
A flurry of deals and openings have happened since then. They include Story Cellar, the second restaurant venture from two Michelin Star chef Tom Sellers launching in Neal’s Yard, and fashion brand Hollister welcoming customers to a new Soho store.
Shaftesbury Capital also said footfall has been lifted by increasing international tourist numbers, particularly evident through May following the Coronation celebrations and “this is anticipated to continue through the summer”.
Ian Hawksworth, chief executive of Shaftesbury Capital said: “We are pleased with the first 100 days of activity across Shaftesbury Capital.”
He added: “Against a backdrop of macroeconomic uncertainty, demand for space in our West End locations continues to be strong across all uses, with 173 leasing transactions completing in the first five months of the year, at rents on average 6% ahead of December 2022 estimated rental value providing confidence for rental growth prospects.”
Customers on the estate have collectively seen sales 13% above pre-pandemic levels on a like for like basis.
Actions taken since the merger, primarily linked to work on administration costs, are expected to result in annualised cost savings of around £7.5 million. Further integration activity continues.
John Cahill, a anaylst at Stifel said: “Overall a robust trading update underpinned by good leasing activity. Higher footfall is supporting a further recovery in tenant trading.”
