Shaftesbury Capital has published a trading update ahead of its AGM, reporting a continued strong demand across its West End portfolio with positive trends in footfall and sales, high occupancy, and leasing activity representing £11.3 million of new contracted rent – 8% ahead of its December 2024 Estimated Rental Value (ERV).

“The establishment of our long-term Covent Garden partnership with NBIM enhances growth and expansion opportunities across our portfolio while strengthening our financial position and providing significant opportunity to the Group,” says Ian Hawksworth, Chief Executive of Shaftesbury Capital.

“We have a strong balance sheet, and, despite current macroeconomic uncertainties, we are well-positioned to capitalise on further market opportunities in London’s West End, delivering long-term sustained income and value growth for our shareholders.”

The REIT completed 128 leasing transactions in its West End portfolio, 9% ahead of previous passing rents with positive trading conditions ensuring a low vacancy rate with only 1.7% of ERV available to let, which when combined with 1.4% under offer, resulted in an EPRA vacancy of 3.1% (December 2024: 3.9%).

Further, the Group says it is experiencing strong leasing demand for its prime West End office space with the refurbishment of + 2 000m² at The Floral completed and fully occupied. Its residential portfolio is well let, with limited vacancy and a handful of units available out of the total 653.

The Group says there is strong momentum across its Covent Garden portfolio with numerous successful openings including Nespresso, Charolotte Tilbury, Alo, and Dolce & Gabbana, alongside lettings to Swatch on James Street, Sunspel on Floral Street, Thule on Neal Street, and social gaming experience, Spyscape which will open its debut UK location on Wellington Street.

Recent signings on Carnaby Street include digitally native brand TALA which is set to open its first store, joining Farm Rio, Missoma and Korean beauty store Pure Seoul. There have been numerous openings across Soho including Autry, De La Vali and Reign Wear. Demand for restaurants remains buoyant, with the introduction of Athea on Maiden Lane, Cafe Kitsune on Monmouth Street and Kricket in Seven Dials. Recent openings in Soho include smash burger concept Heard, restaurant and wine bar Marjorie’s and Breadstall Pizza, while Alta is currently fitting out its restaurant in Kingly Court and Sushi Joy has opened in Chinatown.

The ERV of the Group’s space under refurbishment amounts to £12.5 million across +-15 000m², representing 5% of portfolio ERV (December 2024: 5.4%). Approximately 35% is pre-let representing £4.3 million of rental income.

In early April 2025, Shaftesbury Capital completed a long-term partnership with NBIM, the Norwegian sovereign wealth fund with regards to its Covent Garden estate. NBIM acquired a 25% non-controlling interest in line with the independent property valuation as at 31^st December 2024, with gross cash proceeds of approximately £570 million received.

“As a result, Shaftesbury Capital has significant optionality, enhancing growth and expansion opportunities across our portfolio. There are a range of options to deploy the proceeds including acquisitions, asset management and repositioning opportunities and repayment of outstanding debt. This year to date, £34 million has been invested in targeted acquisitions in Covent Garden and Soho (before costs), presenting asset management opportunities with excellent rental growth prospects and the pipeline of acquisitions is encouraging, with a number of buildings currently under review. Three properties, including the last remaining Fitzrovia assets, have been disposed of during the period for gross proceeds of £12.3 million in line with the 31 December 2024 valuation,” notes Hawksworth.

The Group has access to significant liquidity. Taking account of proceeds and debt repayment (£67.5 million of the Canada Life loan facility repaid in March 2025), its pro forma EPRA loan-to-value (LTV) ratio (based on December valuations) is 17% (December 24: 27%) and net debt is £0.7 billion (December 24: £1.4 billion) on a proportionally consolidated basis. Cash and undrawn facilities amount to over £1.1 billion (December 2024: £560 million).