The strength of the UK retail property sector continues to shine through with Shaftesbury Capital on Thursday (27 February) becoming the latest in the sector to deliver “a strong set of results for 2024”.

Of course, being blessed with one of the UK’s best real estate portfolios — London’s West End, including Covent Garden and Soho — helps, and its CEO Ian Hawksworth said its golden area “continue[s] to be busy and vibrant with high footfall and customer sales growth”. 

So there was “significant growth in rental income and property valuation”, underpinned by strong strong leasing demand with 473 transactions completed 9% ahead of December 2023 estimated rental value (ERV), “with an excellent leasing pipeline”.

There was “significant growth” too in rental income and property valuation, the latter up 4.5% in the West End to £5 billion, as underlying earnings jumped 16.2%, boosted by high footfall and customer sales growth.

It noted that although the wider central London investment market for larger lot sizes has been relatively quiet, the West End market for smaller lot sizes has been active.

Hawksworth added: “The momentum of 2024 has continued into the current year. With our strong balance sheet, we are well-positioned to capitalise on market opportunities and confident of delivering further growth as the leading central London mixed-use REIT.”

That means delivering on its medium-term targets of 5-7% ERV growth.

He added: “We are seeing the benefit of incorporating Seven Dials and Opera Quarter with the Covent Garden Piazza unifying the Covent Garden district, through our leasing, asset management and marketing activity.

“Our customers are responding positively with demand for available shops and restaurants. We have been able to make changes in Seven Dials at pace, reinforcing consumer interest in the wider Covent Garden area and delivering leasing performance and customer sales growth… with 33 new concepts introduced to the district this year.” 

And on nearby Soho, including major tourist destination Carnaby Street, he said the area continues to evolve through its targeted leasing programme, “introducing differentiated concepts, relevant to the consumer with 21 new signings over the year”.