Weak sterling and foreign shoppers buoy Shaftesbury

London landlord Shaftesbury today said that high-spending tourists continue to flock to the West End despite the debt crisis in Europe.

It said business is booming at its shopping hubs in Carnaby Street, Chinatown and Covent Garden as the weak pound attracts overseas visitors and Brits to the capital.

Finance director Brian Bickell said: "The pound is doing less badly than the euro but is still pretty weak against the euro so London is still cheap.

"The West End is still very prosperous. It is an international destination. There is doom and gloom elsewhere but we are not seeing it here."

The Shaftesbury estate includes shops, restaurants, bars and offices and its value rose £111.3 million to £1.35 billion in the six months to end-March. Rental income increased by £2 million to £32.4 million. It pushed Shaftesbury back into the black with profits of £122.8 million in the first half against a loss of £159.8 million a year ago.

The return to profit followed the worst property slump in decades and came despite extreme winter weather in January and disruption to air travel last month due to the volcanic ash cloud from Iceland.

The company proposed an interim dividend of 5p a share, or £11.3 million, up from £10.2 million for the same period last year.