5th Oct 2023 09:36
(Alliance News) - Great Portland Estates PLC on Thursday said its rental values are ahead March as it signs new leases in the first half.
The London-based property developer said it has made 37 new leases during the first half to September 30, generating annual rent of GBP11.2 million, of which it will receive a GBP10.3 million share.
The firm said market lettings are on average 13% ahead of its rental value at March.
It said 9 of the leases are fully managed at GBP220 per square foot, 14% ahead of March 2023. 18 are retail leases securing GBP4.1 million of rent, 18.1% ahead of rental value at March. A further GBP6.2 million is currently under offer.
Great Portland noted that it acquired freehold interests at 16/19 Soho Square, 29/43 Oxford Street and 7 Falconberg Mews for a total of GBP70 million, or GBP772 per square foot.
The company said it has also agreed a new GBP250 million unsecured term loan, bringing its cash and undrawn facilities to more than GBP470 million.
Chief Executive Toby Courtauld said: "We are seeing healthy demand across our range of high quality, well-located spaces, signing up customers at rents comfortably ahead of March 2023 rental values. We are making good progress across our development and refurbishment programme, committing to our Jermyn Street scheme and adding to the pipeline with our acquisition in Soho Square.
"Looking ahead, current market conditions will likely further constrain supply in a market where high-quality space is extremely scarce. As customers compete to secure the next home for their business, we fully expect the gap between the best spaces and the rest to widen."
Great Portland shares rose 1.4% to 394.00 pence each on Thursday morning in London.
By Harvey Dorset, Alliance News reporter
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