Great Portland Estates (GPE), a major central London landlord, has recently provided a trading update, sharing positive developments and important updates regarding its flagship property on Regent Street. The update reveals that GPE’s momentum is growing, and significant progress has been made in leasing activity.
One of the key updates is that Superdry, the previous tenant of GPE’s flagship store at 103/113 Regent Street, has decided to exit the premises. Superdry, which faced challenges in recent years, particularly exacerbated by the pandemic-related lockdowns, had an annual rent of £4.3 million. GPE has accepted the surrender of Superdry’s lease and plans to replace them with a global fashion brand. However, the specific brand has not been disclosed yet. It is worth noting that Superdry is actively searching for a new location in central London, considering the numerous property options available due to the increase in vacant stores since the start of the pandemic.
GPE’s CEO, Tony Courtauld, expressed optimism regarding the company’s leasing activity. He mentioned that an increase in enquiries during the first quarter of the year has resulted in healthy leasing activity. GPE has successfully secured tenants for £12.7 million worth of new annual rent, with £8 million coming from retail spaces. This success has led to a 2.2% increase in the group’s rent roll to £97.3 million, and a decrease in the vacancy rate from 13.2% to 11.8% since the end of March.
Furthermore, GPE has achieved improvements in rent collection compared to previous quarters. Currently, 86% of the June rent has been collected, taking into account the amounts covered by rent deposits. Excluding deposits, the collection rate stands at 84%. However, it is worth noting that the collection rate differs across sectors, with GPE successfully collecting 93% of rent from office units but only achieving a 58% collection rate from the retail, hospitality, and leisure sectors.
In conclusion, GPE’s trading update highlights positive progress for the company. The exit of Superdry presents an opportunity for GPE to attract a new global fashion brand, contributing to its momentum and further strengthening its position in the central London property market.
Useful links:
1. Great Portland Estates Official Website
2. Regent Street Online
