West End of London landlord Shaftesbury bucked the trend of retail negativity and reported a strong Christmas trading period.
The company, which owns a 15.2-acre portfolio in the heart of the West End including Carnaby Street, said early data indicated retailers and food and beverage operators in its portfolio saw turnover and footfall growth in the three month period to the end of 2019.
During the period, Shaftesbury concluded lettings, lease renewals and rent reviews to the tune of £8m a year at or above estimated rental values (ERV). Vacancy also dropped in the three months by 0.1% to 3.6%, worth £5.4m in rent a year. However, £2m of that is under offer and in lawyers hands.
At its 72 Broadwick Street scheme, the company has pre-let 32,000 sq ft of the 66,000 sq ft building to US fitness brand Equinox, representing £2.5m of annual rent. The group said it had encouraging interest in the remaining commercial space, which will complete in phases between autumn 2020 and spring 2021. In addition, the scheme will have 15 new apartments across 14,000 sq ft, which are expected to be available to let in spring 2021.
It was also on site carrying out refurbishment work at 49 other schemes, extending to 131,000 sq ft and representing 6.2% of portfolio ERV.
The company said it anticipated that projects with an ERV of £3.5m will complete in the coming quarter, which will increase EPRA vacancy at 31 March 2020. At its Longmartin joint venture, which lost 8.5% in value last year due to the large nature of the stores, Shaftesbury as completed a flagship retail unit on the corner of Long Acre and Upper St Martin’s Lane and three restaurants on the north side of St Martin’s Courtyard. It is also in the process of re-configuring two large shops on Long Acre to reinstate office space.
Brian Bickell, chief executive, said: “Traditionally, the period leading up to and throughout Christmas and New Year has always seen the highest footfall and busiest trading, and this year has been no exception. Early data indicates that generally our occupiers, particularly food and beverage businesses, have seen turnover growth over the period, in contrast to reports of static or declining revenue and footfall nationally.
“There are early signs of increasing activity in institutional property investment markets, although, in our locations, private owners remain reluctant to sell assets which, in common with our portfolio, offer both security and potential for income and value growth.
“Our proven strategy and impossible-to-replicate portfolio continue to give us confidence in the long-term prospects for the business.“
SHB : Shaftesbury reports strong Christmas trading period