London-based property giant GPE, formerly known as Great Portland Estates, has announced a strong operating performance in its latest trading update for the quarter ending 30 June. Despite challenging economic conditions and increasing pressure on property values, GPE remains positive and continues to generate strong results.
In the three-month period, GPE signed 22 new retail leases and renewals, resulting in an annual rent of £6.4 million. This showcases the company’s ability to attract tenants and generate consistent rental income. Market lettings were also up by an impressive 16.9% on the estimated rental value in March, reaffirming GPE’s confidence in its rental growth guidance of 0-5% for the current financial year.
Alongside its successful leasing activity, GPE made two significant property acquisitions in London. One of these acquisitions was the purchase of 141 Wardour Street in Soho, a mixed office/retail space acquired for £39 million. These acquisitions further enhance GPE’s diverse portfolio and position the company for future growth.
Toby Courtauld, the chief executive of GPE, expressed his satisfaction with the positive performance, stating, “While our vacancy levels are low, we have had another active quarter. We are pleased to see that we currently have £5.3 million of rent under offer, which is 13% ahead of our expectations.” Courtauld added, “Our focus on the best spaces aligns well with the increasingly discerning market demand. With our strong balance sheet and ample liquidity, we are confident that we have the team and the track record to seize opportunities that arise, especially if the economic uncertainty persists.”
GPE’s ability to deliver impressive results in a challenging economic climate is a testament to the company’s solid strategy and expertise in the London property market. As the company continues to attract tenants, increase rental income, and make strategic acquisitions, it remains well-positioned to navigate the current economic uncertainty and capitalize on emerging opportunities.
Useful Links:
1. GPE Official Website
2. Property Week: Great Portland Estates
