When new restaurants apply to open in parts of Soho, central London, they are put through a rigorous Dragons’ Den-style screening process.
Shaftesbury, the landlord for Carnaby Street and Chinatown, is particularly discerning about which tenants it allows onto its 14.5 acres of prime real estate — typically preferring independent outlets over chains. This approach has helped Shaftesbury, a FTSE 250 investment trust, deliver consistent growth in net asset value (NAV) and rental income over the past decade.
Lately, however, a gulf has opened up between its NAV and its share price, which has been on the slide. Under pressure from Brexit and a waning property market, the shares have fallen 16% since January, ending last week at 888p to value the company at £2.7bn.