London’s West End gets welcome boost with return of foreign tourists
An influx of foreign tourists over the past 12 months has delivered a boost for the West End’s biggest landlord, Shaftesbury Capital, as it reveals its first financial results since its £3.5bn takeover last year.
The London firm signed 526 lease deals over the period, accounting for £37m of rent, at 10 per cent ahead of the estimated rental value.
Earnings per share (EPS) were also up, leading to a jump in the dividend from 2.5p per share to 3.15p per share.
These are the first results posted by the company since its formation through the reverse takeover of Shaftesbury by Capital & Counties (Capco) in March 2022.
Since then, the business has signed on 23 new brands, including Pangaia, Alo, Elemis, Ergon House, and The Little Violet Door, bringing its vacancy rate down to 5.4 per cent.
The landlord says several leases are also “under offer”, which, if successful, will push the rate down to 2.1 per cent.
Retail and hospitality leasing demand has been strong across the portfolio, with luxury makeup and skincare concept Charlotte Tilbury is upsizing to a new flagship store on the Piazza following the success of its James Street store.
Chief executive Ian Hawksworth said: “It’s been a positive start to the year, our West End estates are busy and vibrant with high footfall, customer sales growth and increasing levels of international tourism.
“There is continued strong leasing demand across all uses with 147 transactions completed in the period, at rents on average 7 per cent ahead of December 2023 ERV and an excellent leasing pipeline, reflecting the appeal of our exceptional portfolio.
“We have completed £213m of asset sales since merger at a premium to valuation, reinvesting over £80m in target acquisitions.
“Backed by our strong balance sheet and talented team, Shaftesbury Capital is well-positioned to deliver growth in line with our medium-term targets as the leading central London mixed-use REIT.”