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Commercial Property News
Shaftesbury report healthy demand for London West End property
West End lanlord, Shaftesbury Plc today, in it's extended Q3 report, said has healthy demand for it's properties. It is engaged in refurbishment and redevelopment of it's existing stock, and when opportunities arise as they did in Berwick and Charlotte Streets in Covent Garden where it spent £63 million, it is acquisitive.
They continue to search for opportunities to secure vacant possession of restaurants and of larger shops to satisfy demand from businesses which wish to expand or to open for the first time in their Villages.
In the total estate there are 25 shops, 4 restaurants and 23 offices vacant, mostly due to construction or refurbishment, amounting to a rental value of £3.4 million per annum, whilst there are 32 new apartments under construction, being mainly conversions from offices, with an estimated rental value on completion of £0.8 million per annum.
Construction of St Martin's Courtyard, part of their joint venture with the Mercers' Company in Covent Garden, will complete in phases this autumn. Progress with lettings in this scheme up to 31 July 2010 is good with 72% let, pre-let or under offer.
Recent falls in long term interest rates may be the only fly in Shaftesbury's ointment, as they will increase the deficit on their derivatives. They have long term interest rate hedging in place in respect of £360 million of this debt, at fixed rates between 4.59% and 5.15% (weighted average rate 4.87%).
They continue to search for opportunities to secure vacant possession of restaurants and of larger shops to satisfy demand from businesses which wish to expand or to open for the first time in their Villages.
In the total estate there are 25 shops, 4 restaurants and 23 offices vacant, mostly due to construction or refurbishment, amounting to a rental value of £3.4 million per annum, whilst there are 32 new apartments under construction, being mainly conversions from offices, with an estimated rental value on completion of £0.8 million per annum.
Construction of St Martin's Courtyard, part of their joint venture with the Mercers' Company in Covent Garden, will complete in phases this autumn. Progress with lettings in this scheme up to 31 July 2010 is good with 72% let, pre-let or under offer.
Recent falls in long term interest rates may be the only fly in Shaftesbury's ointment, as they will increase the deficit on their derivatives. They have long term interest rate hedging in place in respect of £360 million of this debt, at fixed rates between 4.59% and 5.15% (weighted average rate 4.87%).
Thu, 12th Aug 2010