Shaftesbury portfolio valuation grows as post-pandemic business improves

By

Nigel TAYLOR

Published
Apr 27, 2022

Post-pandemic business continues to improve for Shaftesbury and the value of its prestige London property portfolio is growing.

“We are now looking forward to an extended period of uninterrupted trading as we enter the important summer season,” its chief executive Brian Bickell said Wednesday.
 
That’s the upbeat news from Shaftesbury ahead of its half-year results late next month. The business owns 16 acres of real estate in the heart of London's West End, including the Carnaby and Covent Garden retail hubs. 

The portfolio’s valuation at 31 March rose to £3.26 billion, from £3.01 billion a year ago. On a like-for-like basis, that's an increase of around 7.5% over the six-month period since 1 October 2021. And that follows a 5.2% like-for-like increase in the six months to 30 September 2021.
 
The increase was driven by “demand-led growth in rental values as operating conditions continue to recover”, it said. 
 
Growth was largely driven by like-for-like estimated recovery value (ERV) growth of 6.4%, with increases across all uses, “reflecting sustained occupier demand and low levels of vacancy, as footfall and trading in our locations continues to recover towards pre-pandemic levels”. 
 
It added: “The strength of our occupational market and improved investor sentiment has led to a tightening of the portfolio's equivalent yield of around 5 basis points from 3.92% at 30 September 2021”.
 
And with “confidence, footfall and sales across our villages continuing to recover well”, Bickell added: “Demand/supply tension in our locations, reflecting strong interest from potential occupiers across all uses and low vacancy, is driving a recovery in rental levels which has been the main component of the valuation increase over the six months to 31 March 2022.”