Shaftesbury Capital’s Share Price Rose 1.30% on a New Acquisition

The Shaftesbury Capital PLC (LON: SHC) share price rose 1.30% after announcing the completion of a strategic acquisition that further solidifies its presence in the heart of London's vibrant Covent Garden. The company has acquired the freehold interests of the properties situated at 25-31 James Street, Covent Garden, at a transaction value of £75.1 million before the inclusion of associated costs.

The acquisition marks a significant enhancement to Shaftesbury Capital's portfolio, given the location's prime commercial value and the properties' inherent potential for growth and value addition. Spanning a total lettable area of 21,000 square feet, the properties acquired by Shaftesbury Capital feature a balanced mix of retail, residential, and office spaces. 

Specifically, the retail component comprises 12,000 square feet, strategically positioned to capitalise on the high foot traffic characteristic of Covent Garden. The remaining 9,000 square feet are dedicated to residential and office accommodations, offering a diversified income stream and the potential for dynamic asset management strategies. 

The contracted annual rent from these properties stands at £3.9 million, indicating a solid yield and financial stability for Shaftesbury Capital's investment. The acquisition is a standalone investment and a strategic addition that complements Shaftesbury Capital's existing assets on James Street.

Recognised as a prime retail corridor and a crucial entry point to the Covent Garden Piazza, James Street embodies the vibrancy and commercial appeal of the Covent Garden area. This strategic investment underscores Shaftesbury Capital's commitment to enhancing its footprint in one of London's most iconic and commercially vibrant districts, offering unique asset management and rental growth opportunities.

Procuring 25-31 James Street follows Shaftesbury Capital's disciplined approach to recycling capital. This strategy involves the selective divestiture of non-core assets and reinvesting capital into properties that align with the company's long-term growth objectives.

The recent completion of disposals totalling £145 million, achieving an 8% gain over valuation, exemplifies this strategy's effectiveness. This prudent financial management maximises shareholder value and ensures the company's portfolio remains dynamic and aligned with market opportunities.

Financially, Shaftesbury Capital continues to maintain a robust position, with substantial liquidity facilitated through cash reserves and undrawn credit facilities. Post-acquisition, the company's pro forma liquidity stands at an impressive £467 million, showcasing its strong financial foundation and readiness to seize further investment opportunities. 

Shaftesbury Capital share price. 

The Shaftesbury Capital share price rose 1.30% to trade at 134.68p from Friday’s closing price of 132.95p.