London's West End buoys Shaftesbury's prospects

LONDON: Properties in London's West End theatre and retail district continue to attract healthy tenant demand, London landlord Shaftesbury plc said on Feb 12, sending rents above its expectations.

The landlord, which owns properties in historic areas such as Carnaby Street and Chinatown, said it was confident its portfolio will prosper in the year ahead and it was continuing to buy property in the area.

It said the West End saw excellent trading over the Christmas and new year period and said it had bought six properties worth a total of £15.7 million ($84.2 million) since the end of September, mainly around Covent Garden and in the Berwick Street area of Soho.

"These buoyant conditions, which are reflected in continuing healthy tenant demand in the West End, especially for shops and restaurants, currently extend to our offices," it said. "Consequently we continue to secure lettings at or above our valuers' last estimated rental values."

At Jan 31, the company owned vacant commercial space worth £2.5 million in rent a year. Of that, about £1 million worth was ready to let and about £700,000 was under offer, the balance being under refurbishment.

Split another way, the vacant space equated to £1.8 million in annual rent from vacant shops, £200,000 from restaurants and leisure sites, and £500,000 from offices.

Of Shaftesbury's joint venture to develop St Martin's Courtyard at Covent Garden, 45% of the £10.2 million annual rent expected from the project was let or pre-let.

At Jan 31, Shaftesbury's bank borrowings were £382 million, against committed facilities of £575 million. -- Reuters