Shaftesbury profits rise as West End sites fend off retail gloom
THE PROSPEROUS West End continued to shelter Shaftesbury from the wider gloom in the retail sector as the London property firm posted a 15 per cent jump in first half profits.
The company, which owns 500 properties across London’s key tourist hotspots including Carnaby Street and China Town reported a pre-tax profit of £16.1m in the six months to the end of March, up from £14m a year earlier.
The estimated rental value of its portfolio also rose by £4.7m over the six month period to £96.9m.
Net asset value was up 1.5 per cent to 470p a share, driven by a 1.4 per cent uplift in the value of the portfolio to £1.74bn.
Chief executive Brian Bickell said that throughout the first half of the year Shaftesbury’s portfolio had been virtually fully let as demand for space in West End locations remained healthy.
Tenant demand from restaurants, cafes and bars, which make up 35 per cent of income was particularly strong.
“London’s reputation as a destination of world renown continues to grow, and this summer’s major events – the Queen’s Diamond Jubilee and the Olympics – will put the city firmly in the world’s spotlight,” he said.
“These events are a unique opportunity for London to promote its many attractions to a global audience.”
Shaftesbury’s three principal “villages”, Carnaby, Covent Garden and Chinatown, all grew in value by around 1.6 per cent. Its Soho holdings around Berwick Street suffered a 2.7 per cent decline.
The company said the area continued to suffer from a “fragmented ownership, a dilapidated public environment, rundown buildings and a struggling street market” as it works on plans to improve and regenerate the area.
Over the year, the group made £29.4m of acquisitions, of which over 90 per cent was in Soho, and the rest in Covent Garden and also won planning approval for two major schemes in Carnaby.
John Manser, Shaftesbury’s chairman since 2004 and a non-executive director since 1997, also announced he will retire after next year’s annual meeting. Jonathan Lane, currently executive deputy chairman, will take his place.