30th Jan 2014 09:12
LONDON (Alliance News) - Great Portland Estates PLC Thursday said the value of its portfolio has increased 5.8% in the quarter ended December 31, 2013, as investor appetite for London real estate, strengthened occupational demand, and a shortage of both existing and new space to let have kept yields low and forced rents higher.
The central London property development company said its portfolio was valued at GBP2.51 billion at the end of December compared with 2.38 billion at the end of September.
The main drivers of the quarterly valuation uplift were its North of Oxford Street properties in London, up 6.4%, and the firm's development schemes which rose in value, net of capital expenditure, by 8.2%.
Great Portland saw rental value growth of 1.3% during the period, boosted by a rise for its West End offices and West End retail of 1.4% and 1.5%, respectively.
EPRA net asset value per share rose 8.2% to 527 pence per share from 487 pence per share.
EPRA is the European Public Real Estate Association, the industry body for European REITs.
The FTSE 250 firm said it signed 29 new lettings during the period generating GBP5.3 million a year, including the pre-let at new office building 240 Blackfriars Road to law firm Boodle Hatfield on a ten-year lease for annual rent of GBP1.2 million.
During the period the company made disposals of GBP256 million, at an average 10.3% premium to the September 2013 book value. This included the sale of 20 St James Street to Pramerica Real Estate Investors for GBP54.5 million last month.
Overall the company's vacancy rate fell to 4.0% from 4.4% in September.
Looking ahead, Great Portland said it has three committed schemes in the pipeline, in the West End, Midtown and Southwark.
The committed schemes, totalling 439,400 square feet, are expected to deliver a 43.3% profit on cost, up from 36.7% at September 2013, and are already 66% pre-let.
Great Portland shares were down 0.4% at 608.50 pence early Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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