London's West End is coming back to life, says major landlord

[LONDON] Life is returning to the shops and restaurants of London's West End, says one of the district's largest landlords.

Shaftesbury Plc's vacancy rate peaked at 11.9 per cent at the end of March, more than double that of a year earlier before the pandemic forced most of its tenants to close. That's since edged lower as demand for empty stores and eateries ramps up, the company said in an earnings statement Tuesday.

"After more than a year of unprecedented disruption, a revival in the West End's broad-based economy is now underway," Chief Executive Officer Brian Bickell said in the statement. "Since the start of re-opening on 12 April, we are seeing an encouraging increase in demand for space and lettings and a return of footfall and spending across our locations."

The pandemic exacted a brutal toll on West End neighborhoods as international tourism ground to a halt and the daily tide of commuters stopped travelling to the city center. The impact was particularly severe for Shaftesbury, which focused on finding independent stores and restaurants to fill its properties around Chinatown, Soho and Covent Garden.

The company has collected just half of the rent owed for the year through March. That's helped wipe 342.6 million pounds (S$646.86 million) from the value of its portfolio, forcing a loss after tax of 338.5 million pounds.

BLOOMBERG