West End remains in demand, says Shaftesbury
Shaftesbury has reported continued good demand and letting activity across its West End property portfolio. In an update for the period from 1 October 2012 to 8 February 2013, the group says available vacant space is at “an exceptionally low level” thanks to strong demand across all its property types and locations.
“We have sustained interest from retailers, particularly from Europe and America, seeking shops in our centrally-located villages. Similarly there are many interesting new restaurant concepts seeking space in the West End,” the group notes. Shaftesbury says the reputation of London and the West End were enhanced by the success of the Olympics and Paralympics last year, anad adds that domestic and overseas visitor numbers to the West End were good in the run-up to Christmas and throughout the New Year period.
Both of Shaftesbury’s major Carnaby schemes are under way. One will provide 10,800 sq ft of West End retail space across three shops on the north side of Foubert’s Place, while the other will create 7,500 sq ft of retail premises on the other side and a new 6,500 sq ft restaurant on Kingly Street. The group said it was encouraged by the interest already shown in the first scheme, which is due to complete in early summer. The second scheme is expected to complete by the end of 2014.
The ERV of wholly owned commercial space available to let as of the end of January was just 2.4% of the group’s total wholly owned commercial ERV, at £2.0, following a “particularly busy period for enquiries and letting activity since September,” Shaftesbury says. The group does, however, expect the number of vacant shops to rise in the first few months of this year – it says this increase will be in line with normal seasonal patterns.
Shaftesbury notes the limited supply of available West End property, saying that the area’s stability and prosperity means that owners “are always reluctant to sell assets which they would find hard to replace”. It also points out that the area always attracts considerable interest from others who are keen to invest. The group continues to seek to invest in properties that complement its existing holdings, that have principally retail and leisure uses or the potential for such uses, and that it feels will deliver long-term growth in income and capital values. Shaftesbury has made a total of £12.4m of acquisitions since the start of October, investing in restaurants, retail premises and office space near Leicester Square.
