Sep 29, 2022
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GPE upbeat on key London commercial property leasing

Sep 29, 2022

Major London commercial property landlord GPE reported strong leasing activity during in its first half as demand for key capital spaces continues to attract retailers.

Great Portland Estates

Despite “challenging” macro-economic headwinds, GPE said in its update covering the six months to 29 September, it secured £16.3 million of rent since the start of the financial year.

In total, 38 new leases were signed during the period with annual rent of £10.3 million, 5% ahead of March’s estimated rental value. 

Total space covered by new lettings, reviews and renewals was 135,400 sq ft, with a further £42 million of rent under offer/negotiation, including £7.1 million under offer on existing space.

Chief executive ​Toby Courtauld said that another strong period of leasing activity “demonstrates continued demand for our brand of high-quality, well-located space, despite the challenging macro-economic and geopolitical backdrop.

"Looking beyond current market volatility, our clear focus on prime sustainable spaces, combined with market leading levels of customer service in core central London locations, will stand us in good stead."

The upbeat view comes after GPE reported strong trading for the 12 months to end-March. The developer and investment firm saw post-tax profit hitting £167.2 million compared to a 2020’s loss of £201.9 million. Its portfolio valuation grew over 6% in the year, with its retail and office book value increasing nearly 8%.

Although it remains to be seen if last year’s leasing numbers can be maintained in what was a period of post-pandemic recovery, demand for key higher-end London property is expected to remain strong. 

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