Shaftesbury continues to see strong tenant demand

Real estate investment trust Shaftesbury said it continued to see strong tenant demand, underpinned by robust footfall and spending, with good progress on its major schemes.

In a trading update for the period from 1 October 2015 to 4 February 2016, Shaftesbury reported EPRA vacancy of 2% at the end of December compared with 1.6% at the end of September.

“The weeks leading up to, and throughout Christmas and New Year, are traditionally an exceptionally busy period, bringing additional visitors and spending to the West End. Although national trading reports have been mixed, we have seen in our areas robust footfall numbers and spending,” the company said.

Available to let vacancy at the end of December comprised 13,200 sq ft of retail, two restaurants, 2,200 sq ft of office space and five apartments.

Meanwhile, space under offer included one small shop, one restaurant, 500 sq ft of offices and two apartments.

Shaftesbury said it has acquired properties totalling £28.4m in the period since 1 October, in Seven Dials and Soho.

“The availability of assets to buy which meet our strict criteria continues to be limited but we continue to identify and investigate a number of potential acquisitions,” it said.

The fair value of the deficit on the group’s interest rate swaps at 31 December 2015 fell over the quarter by £5.8m to £73.4m.

At 1254 GMT, Shaftesbury shares were up 0.9% to 856.50p.