// West End landlords Shaftesbury and Capital & Counties Properties feel the impact of the recent economic turbulence
// The landlords have seen the valuation of their portfolio drop by 3.6% on a like-for-like basis
London’s West End has seen the valuation of its portfolio hit by economic turbulence in the last few months.
Landlords Shaftesbury and Capital & Counties Properties, which are expected to merge soon, recorded a portfolio valuation of £3.2 billion at the end of September, a drop from the £3.3 billion over the period since the end of a March.
The decline represents a fall of around 3.6% on a like-for-like basis.
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Shaftesbury boss Brian Bickell said: “Our occupiers continue to report trading revenues, on average, above 2019 levels and demand for space in our carefully-curated, popular locations remains good across all uses, reflected in a return to pre-Covid occupancy levels and further growth in rental values.
“Valuers have reported an outward shift in commercial valuation yields, due to the impact on investment market sentiment of globally-rising finance rates and the deterioration in the macroeconomic outlook.”
Capital & Counties reported Covent Garden valuations to have declined 2% since June to £1.78 billion.
Capital & Counties CEO Ian Hawksworth said: “Trading activity at Covent Garden remains resilient with strong leasing demand across all uses, and positive footfall and sales metrics.
“The volatile macroeconomic environment is having an impact on asset valuations, however we are encouraged to continue to see rental growth in our portfolio.”
