The health of UK retail continues to be reflected in the positive performances being delivered by commercial property landlords. The latest is industry giant Shaftesbury Capital, with CEO Ian Hawksworth talking of a “pleasing” performance for its six months results ended 30 June.

Its premier district, London’s West End, continued to enjoy an improving performance (leasing and rents 7% ahead of December and valuations growing) leaving the group “well positioned… with a strong balance sheet”.

It booked an operating profit of £110.6 million against £40.8 million at the 2023 half-year, while adjusted net assets inched up 1.6%.

The group has seen a robust increase in leasing demand with 217 transactions, representing £28.1 million of contracted rent, 16% ahead of previous passing rents.

It also described the growth potential of its core London portfolio as “compelling” with investment priority is currently focused on three locations, Covent Garden, Carnaby/Soho and Chinatown.

“Against an improving market backdrop, we are looking at opportunities to expand, adding to our growth prospects” it said. 

And with reports from Tourism London showing spending by overseas and out-of-town visitors increased significantly last year, the outlook also seems promising as its tenants feel the benefit of increased footfall and sales growth.

Plus strong demand for West End office space and staff continuing to be prised away from home working, related retail spending and footfall will also continue to rise.

So an upbeat Hawksworth added:  “With a strong balance sheet, we are well-positioned to generate rental growth and take advantage of market opportunities.”