London landlord Shaftesbury boosted by tourism rise

Published 18th Aug 2009

Demand for property in areas such as London's Theatreland has risen following an influx in domestic and overseas tourists.

A record influx of overseas and domestic tourists has boosted demand for property in London's West End, landlord Shaftesbury reported today.

The firm, which owns more than 450 properties in London's Theatreland, Chinatown and Carnaby Street, said it was seeing "healthy" demand for retail, restaurant and residential property. "We are continuing to meet or exceed our letting targets for these uses," it said.

Demand for offices, however, continues to fall and rents remain under pressure. Shaftesbury said that when offices become vacant it tries to find alternative uses for the property.

"London's West End, which has proved very resilient throughout the recent period of economic turbulence, continues to prosper and there is now evidence of stability returning to financial and property markets. We are confident that demand for our well-located shops, restaurants and residential accommodation will remain strong," the property group said.

The amount of vacant commercial space in its wholly owned portfolio remains "very low", with a rental value of £800,000. "We are actively seeking opportunities to secure vacant possession of restaurants and larger shops to satisfy demand from businesses which are keen to expand or open in our villages," Shaftesbury said.

Since April, it has bought £20m of property, including two restaurants and seven shops, and is looking for further acquisitions. However, the firm noted that many property owners are reluctant to sell assets which have proved to be good long-term investments.

Construction of a new shopping and leisure complex at St Martin's Courtyard is progressing well. The shops and restaurants will be ready for tenants to fit out from February and are expected to be let and ready to trade by the summer of 2010.

Shaftesbury recently raised £149m through a rights issue and used the money to pay down debt. However, activist investor Laxey Partners sold its 19% stake in the company following the two-for-three share sale in May.

Source: ' Guardian '

View All Latest News