Shaftesbury keen to buy after slump
THE LONDON landlord Shaftesbury reported a fall in the value of its property last year, but forecast improving demand and more acquisitions.
Shaftesbury, which owns more than 450 properties focused in the West End, said its portfolio was worth £1.21bn at the end of September, down 3.8 per cent against a year ago after falls earlier in the year.
The group expects strong demand for West End shops, restaurants and apartments next year, after the value of its properties bounced back 7.1 per cent in the second half.
Shaftesbury said demand for space in the capital’s shopping and leisure district has held up throughout the year despite the slump.
It raised £150m through a rights issue in May to buy cut-price property and voiced confidence about its ability to snap up more assets.
It made £29.8m worth of acquisitions in the year to September 2009, and has a further £213.8m of unused bank facilities.
“The levels at which we let our restaurants, shops and apartments have been absolutely consistent for the last three or four years, and if anything I think it might improve in the next year,” chief executive Jonathan Lane said.
Major UK landlords Land Securities and British Land last month called an end to commercial property’s two-year slump, while October values jumped the most in nearly four years.
JPMorgan property analyst Harm Meijer said:“Opportunities have opened up particularly for quality names like Shaftesbury.”