Shaftesbury PLC looks towards recovery but says more financial support is a

PLC (), the owner of a big chunk of prime property in London’s West End, said it is more optimistic over the future following the government’s lockdown easing roadmap but more financial support will be required.

The FTSE 250 member has more than 600 shops, restaurants, cafés and pub tenants, as well as office occupiers which it said have now suffered almost 12 months of significant disruption, inevitably undermining their financial position.

In a trading update, the group said it has supplemented government support measures with rent concessions and restructured leases to provide occupiers with the confidence to emerge from lockdown and build turnover as footfall recovers.

“We expect to continue our support until the recovery is firmly established, tapering as conditions improve,” it added. 

“Working with other owners and stakeholder groups, we continue to lobby for the continuation of Government financial support for businesses affected by lockdown measures, including the extension of the business rates holiday and furlough scheme, as well as reduced VAT for hospitality businesses, which will be essential until there is a sustained return to normal levels of activity and trading.” 

The FTSE 250 group added it is still owed 42% of the rent for the quarter ended June 2020 due to the impact of repeated lockdowns, with some of this now either waived, deferred or just outstanding

Its latest quarter also suffered a significant impact form the latest lockdown, the group added.

All hospitality and non-essential retail businesses were only able to trade for seven of the past 21 weeks and for just three over Christmas and the New Year.

said the restricted trading meant 45% rent collections for the quarter to 31 December 2020 with 36% of January 2021 rents collected to date.

Rental interest had picked slightly it said, but it was very early stage with vacancy rates at 10.8%

Brian Bickell, chief executive, added: “The relaxation of pandemic restrictions will herald the revival of the West End’s economy in the months ahead, with a gradual return of local and domestic footfall and the reopening of hospitality businesses, shops and its world-renowned cultural and leisure attractions.

“Our strategy of supporting the survival and reopening of our existing hospitality and retail businesses is aimed at ensuring our locations will be animated, interesting and welcoming for returning customers.”