Shaftesbury has reported continued strong demand and good progress on lettings which have resulted in in high occupancy and further rental growth across its Londion estate.
It said that against a background of limited supply, it had acquired four more properties since 31 March totalling £10.5m, bringing acquisitions in the year to date to £22.9m.
The acquisitions, in Soho and Covent Garden, comprised three shops (2,800 sq. ft.) and one restaurant (2,200sq ft) with 3,400sq ft of offices and three apartments on upper floors. The restaurant was vacant at acquisition but is now let.
In addition, the group has exchanged contracts to acquire a long leasehold interest in all the commercial elements of a substantial development in the heart of Soho, on the site formerly occupied by Trenchard House. Its interest will comprise retail and restaurant space (approximately 6,500 sq. ft.) on the ground floor and basement fronting Broadwick Street, a busy route linking Carnaby and Berwick Street.
The regeneration scheme, which also will provide 78 apartments, is expected to complete in summer 2015.
In Carnaby Shaftesbury said the redevelopment of buildings fronting the south side of Foubert’s Place and Kingly Street started in January, and will provide 7,500 sq ft of retail space, a 6,500 sq ft restaurant, 10,500 sq ft of offices and 12 apartments. The estimated rental value (ERV) of this new scheme is £1.9m, of which the commercial space contributes £1.5m. Shaftesbury said it is expected to produce an increase in annual rental income, compared to pre-scheme levels, of around £1.5m, based on current ERVs. The estimated cost is £13.5m and completion is expected by the end of 2014.
The ERV of other commercial schemes across the wholly owned portfolio amounted to £2.1m, equivalent to 2.5% of wholly owned commercial ERV. This includes five restaurant schemes, with a total ERV of £1.1m, all of which are now let or under offer. Offices under refurbishment include 11,000 sq ft in Ganton House, Carnaby, which will be available by the end of 2013.
The ERV of available to let wholly owned commercial space amounted to £3.2m at 30 June 2013, or 3.8% of wholly owned commercial ERV, of which £2m was under offer.
Shaftesbury’s scheme on the north side of Foubert’s Place completed in May and two of its three shops, totalling 7,000 sq ft, are now under offer to international retailers.
In Kingly Court, Carnaby, where the landlord is introducing more food and beverage-related retail, it has now secured vacant possession of 10 small units which are now being marketed.
Total debt at 30 June 2013 was £583.2m, a net increase of £7.8m since 31 March 2013 and the group’s undrawn committed bank facilities totalled £112.8m. Undrawn facilities reduced further by £13.5 million following payment of an interim dividend early in July.
