FINANCE: Shaftesbury has reported continuing strong demand for its central London villages in an upbeat trading statement.
In the financial year to date from 1 October 2013, the Carnaby Street landlord said it has completed lettings, lease renewals and rent reviews with a total rental value of £19.1m.
Commercial lettings and renewals across its 14-acre holdings have been agreed at rents 4.9% above valuers’ ERVs at 30 September 2013.
Commercial rent reviews have increased rents by 27.2%, broadly equivalent to compound growth of 5% pa taken over a five-year period.
Shaftesbury said this transactional evidence “is particularly valuable to us in establishing higher rental tones in our adjacent ownerships”.
Updating on its refurbishment programme, the firm said that during the financial year to date it has progressed schemes over 139,000 sq ft, equivalent to 8% of the floor space in the wholly-owned portfolio.
In the 10 months of its financial year Shaftesbury has added £107.7m of properties to its portfolio, including in the quarter ended 30 June it bought a Soho block for £4.2m.
Commenting on its development portfolio, it said it expects to complete its Carnaby redevelopment fronting Foubert’s Place and Kingly Street in phases from early 2015 with an ERV of £2m.
The ERV of other schemes in progress at 30 June 2014 was £2.6m, equivalent to 2.2% of total ERV.
The ERV of available lettable space was £3.2m, up from £2.7m at 31 March, of which £800,000 is under offer. The remaining ready to let vacancy increased from 1.1% to 2.1% over the quarter, partly due to the completion in June of two reconfigured restaurants in Chinatown.
On the financials, Shaftesbury said after allowing for the interim dividend payment on 4 July 2014 total debt at 30 June 2014 was £612.5m and undrawn committed facilities totalled £143.3m.
bridget.o’connell@estatesgazette.com
