Shaftesbury profit grows 47pc as London rent rises

Owner of Carnaby St and Chinatown properties increases profit in the first half of the year as international demand for London real estate keeps vacancy rates low

Shaftesbury said demand for accommodation continues to be "healthy"

Property investment group Shaftesbury saw profit grow by almost 50pc in the six months to the end of March, thanks to strong demand for its London portfolio.

Shaftesbury, which owns 575 properties in Carnaby, Covent Garden, Chinatown, Soho and Charlotte St, increased profit before tax by 47pc in the first half of the year to £120.5m, compared to £81.8m a year earlier.

Revenue from properties increased by 8.7pc to £48.5m, up from £44.6m in the same period last year.

Brian Bickell, chief executive of the company, said London’s international prestige meant rents continued to grow.

"London's global appeal to businesses, visitors, and as a place to live continues to underpin its prosperity, resilience and prospects.

“In our West End locations, demand for accommodation continues to be healthy, resulting in steady and sustained growth in rental income and low levels of vacancy," he said.

Mr Bickell added that Shaftesbury’s strong growth reflected the improving economic climate.

“Improving economic sentiment and substantial public and private investment in buildings and infrastructure are bringing more business and visitors to the West End.

“We are confident that, with our proven long-term management strategy, our portfolio will continue to deliver sustained growth in income and capital values," he said.