Shaftesbury sees West End rents rise

City A.M. Reporter
PROPERTY group Shaftesbury yesterday said tourists travelling to London had not been put off by the economic woes of the Eurozone, as it announced a 14.3 per cent jump in net asset value for the first half of the year.

“Although the outlook for the UK and European economies remains uncertain, London’s West End is prospering,” chairman John Manser said. “Consumer spending in our locations remains buoyant, which is reflected in strong demand for our shops and restaurants and historically low levels of voids throughout the portfolio.”

The company, which owns large swathes of the Chinatown and Carnaby Street business districts, reported adjusted diluted net asset value of 383p per share and a £2m rise in group rental income to £32.4m. The value of its total property portfolio has risen £111.3m to £1.35bn in the six months to end of March.
This rise boosted its capital growth return to 16.1 per cent in the year to 31 March, more than double the 7.6 per cent industry benchmark as recorded by Investment Property Databank.

Tourists and domestic shoppers continued to support its niche retail and leisure tenants despite extreme winter weather and air travel disruption, pushing vacancy across its portfolio to historic low levels, Shaftesbury said.

It said it was planning a number of new developments in the Carnaby Street area, particularly to meet the demand for larger shops, which would lead to a short term loss of income and an increase in non-recoverable outgoings.