23rd Jan 2019 09:06
LONDON (Alliance News) - Commercial property investor Great Portland Estates PLC said on Wednesday it had a strong leasing performance in the third quarter of its financial year.
In the three months to the end of December, 16 new lettings totalling 51,400 square feet were signed, generating an annual rent of GBP4.3 million, 5.4% ahead of March 2018's estimated rental value.
Great Portland has 22 lettings under offer totalling GBP10.4 million per annum of rent, with GBP6.9 million net to the company, 7.6% ahead of ERV.
Great Portland said it had made good progress on its three committed schemes, including Hanover Square which is already 48% pre-let or under offer.
The group said there were "encouraging levels" of occupier interest, for the schemes with capital expenditure expected to come to GBP155.7 million.
During the quarter, Great Portland Estates made GBP74.4 million in property sales, consisting of the sale of 55 Wells Street, London for GBP64.6 million, and GBP9.8 million in residential sales.
Sales worth GBP7.6 million are currently under offer and GBP10.0 million worth is in the market for sale.
Looking ahead, Great Portland has 11 schemes totalling 1.3 million square feet in its pipeline, with average lease length of 3.2 years.
"I am pleased to report another quarter of positive operational activity with healthy leasing ahead of ERV, the continued successful rollout of our flexible space offering and excellent progress at our three committed development schemes. Moreover, with GBP339 million of net sales so far this financial year, we commenced our on-market share buyback programme, maintaining our capital discipline and returning surplus equity to shareholders," said Chief Executive Toby Courtauld.
Shares in Great Portland Estates were up 0.4% at 703.90 pence on Wednesday.
Related Shares:
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