Shaftesbury acquires Covent Garden freeholds for £75.1m

Shaftesbury Capital announced the acquisition of the freehold interests in 25-31 James Street, Covent Garden, for £75.1m before costs on Monday.

The FTSE 250 company said the acquired properties boasted a contracted rent of £3.9m and offered a total lettable area of 21,000 square feet, encompassing 12,000 square feet of retail space, along with 9,000 square feet allocated for residential and office accommodation.

It said the acquisition would provide it with immediate rental income, and present promising opportunities for asset management and rental growth.

Situated on James Street, a prime retail thoroughfare and a crucial entry point to Covent Garden Piazza, the properties would sit well with Shaftesbury Capital's existing portfolio in the area.

In line with its strategic objectives, Shaftesbury Capital recently divested assets totaling £145m, surpassing valuations by 8%.

The board said the divestment strategy allowed it to reallocate capital towards high-potential assets, such as the freshly-acquired James Street properties.

With the acquisition, Shaftesbury Capital said it was maintaining robust liquidity, bolstered by cash reserves and undrawn facilities.

Post-acquisition, its pro forma liquidity stood at an impressive £467m, underscoring its financial strength and capacity for further growth.

Reporting by Josh White for Sharecast.com.