Shaftesbury Capital's property portfolio in the West End of London attracts some 150 million visitors and shoppers annually,
Image: File
Shaftesbury Capital’s London, West End portfolio delivered a strong return of 5% for the six months to June 30 after the property valuation increased 3.4% to £5.6 billion supported by a 3.8% increase in ERV (estimated rental value) to £281 million.
“Despite broader market uncertainty, our West End portfolio continues to deliver high footfall, customer sales growth, high occupancy and a strong pipeline. We have significant growth potential and, supported by our strong balance sheet, are well-positioned to pursue expansion and capitalise on opportunities,” said the chief executive Ian Hawksworth in a statement.
First half underlying earnings were up 8% to 2.4 pence per share, and the interim dividend increased by 16% to 2.2 pence per share.
The portfolio stretches across Covent Garden, Carnaby|Soho and Chinatown and welcomes an annual footfall of about 150 million. Some 70% of footfall is driven by domestic visitors, with Londoners accounting for around 40% and visitors from elsewhere in the UK a further 30%. International visitors contribute the remaining 30%.
Hawksworth said 226 leasing transactions were completed, which is 18% ahead of previous passing rents and 5% ahead of December 2025.
Occupancy was high at only 2.6% of ERV available to let, with strong footfall and customer sales growth.
“Our growth prospects are underpinned by strong fundamentals. The West End market is characterised by consistently high occupancy and scarcity value. With limited new supply and consistently high demand for well-located space, the fundamentals of the West End market are supportive of sustainable long-term rental growth,” said Hawksworth.
Investment activity continued through £31.2m of capital expenditure and the acquisition and disposal of non-core assets for £64.7m, broadly in line with valuation.
In June 2026, the Covent Garden partnership entered into a new £300m unsecured revolving credit facility on attractive terms with a five-year maturity and two one-year extension options.
Spend, basket sizes and overall trading productivity continued to improve through the six months, supported by more frequent and longer visits reflecting the strength of engagement across our destinations.
“This is evidenced by existing customers continuing to expand and secure larger or additional space across the portfolio. Rents across our portfolio remain affordable, with average retail and food and beverage rents of £117 per square foot providing capacity for sustainable rental growth,” the group said.
Carnaby Street and Kingly Court were being enhanced through a series of cultural installations and targeted public realm improvements. Recent proposals include year-round alfresco dining, upgraded entrances, and enhanced streetscaping, lighting, seating and wayfinding.
These enhancements aim to strengthen connectivity with Carnaby Street, improve visibility and the customer experience, and future-proof this destination while preserving its distinctive character, supporting higher dwell times, stronger trading performance and long-term rental growth.
Improvements to the Henrietta Street public realm in Covent Garden were well advanced and were expected to be completed by the end of the year. The works include widening the footway, clearer pedestrian routes and sightlines, upgrading surfacing and public lighting, alongside enhanced al fresco dining through the introduction of awnings and greening.
BUSINESS REPORT