At 31 March 2008, the Group's portfolio was valued at £1,329.8m. 

Our wholly owned portfolio at 31 March 2008 included 299 shops extending to 377,000 sq. ft. and producing 41% of total income, with an average unexpired lease term of six years. Of the 25 vacant units, seven larger shops represent 60% (£1.4 million) by rental value of our total retail vacancies.

We have 161 restaurants, bars and clubs with a total area of 404,000 sq. ft. They provide 29% of our contracted income with an average unexpired lease term of fourteen years. Six of our eight vacant restaurants, which represent 92% by rental value, are under offer.

Catering ventures are long term projects for both landlord and tenant and require considerable initial investment. Consequently, new leases are usually for at least a 25 year term. Supply of new restaurants, particularly in the West End, is limited by strict planning and licensing regulation. At the same time, there is an ever growing demand from experienced and enterprising operators to open new ventures to satisfy the increasing popularity of “eating out”, an important element of any visit to the West End.

Whilst restaurants and cafes are an essential element in all our villages, our main concentrations are in Chinatown (59 units) and the Opera Quarter (18 units). It is no coincidence that these are located next to the London’s largest clusters of theatres and cinemas.

As a result of these factors, restaurants in our central locations are exceptionally secure investments, which have shown and continue to deliver good rental growth with virtually no obsolescence for us as landlord.

Our 417,000 sq. ft. of offices have 327 tenants and produce 23% of current income. Whilst we have yet to experience any reduction in demand and consequent fall in rents, the supply of vacant space is increasing. The office market tends to be cyclical and with small units (an average size of 1,275 sq. ft.) and short leases (average unexpired term four years) our offices are more exposed than our other uses to any downturn. Consequently, we are always looking for opportunities to convert our least valuable offices to other less cyclical commercial and residential uses.

Our 271 apartments represent 7% of our income. Existing units remain effectively fully occupied and, when units become available, they are usually re-let within three to four weeks. The 29 which are under conversion should let readily over the summer months once they are completed.