TIDMGPE
RNS Number : 1132F
Great Portland Estates PLC
06 July 2023
6 July 2023
Quarterly trading update
Great Portland Estates plc (GPE) publishes a trading update for
the quarter to 30 June 2023.
Toby Courtauld, Chief Executive, said: " Against a challenging
macro-economic backdrop that is placing upward pressure on yields,
particularly for non-prime spaces, we are pleased with our strong
operating performance. Whilst our low levels of vacancy means we
have limited space to lease, we had another active quarter with
GBP6.4 million of new leasing deals at rents 17% higher than the
March 2023 ERV, reaffirming our confidence in our rental value
guidance of 0% to 5% growth for the financial year. We are also
encouraged by the further GBP5.3 million of rent that we currently
have under offer, some 13% ahead of ERV.
Our focus on the best spaces, whether HQ developments, Fitted or
Fully Managed, is well suited to meet a market demand that is
increasingly discerning. And with our strong balance sheet and
plentiful liquidity, we are confident that we have the team and the
track record to capitalise on opportunities that are emerging,
particularly if the economic uncertainty persists ".
Good levels of leasing activity
-- 22 new leases and renewals signed in the quarter generating
annual rent of GBP6.4 million (our share: GBP6.4 million), with
market lettings on average 16.9% ahead of March 2023 ERV,
including:
o four Fully Managed leases signed at an average GBP252 per sq
ft, including achieving GBP278 per sq ft on a renewal at 16
Dufour's Place, W1, 20.9% ahead of March 2023 ERV; and
o twelve new retail leases securing GBP2.6 million of rent with
market lettings 20.8% above March 2023 ERV.
-- Our investment void rate remains low at 3.6%;
-- a further GBP5.3 million of rent is currently under offer;
market lettings 13.2% ahead of March 2023 ERV; and
-- 99.2% of rent charged was collected within seven working days.
During the quarter, at 16 Dufour's Place, W1, we renewed the 3rd
floor (3,100 sq ft) lease with a marketing firm on a Fully Managed
basis. They have taken an additional two year lease, paying a rent
of GBP278 per sq ft, an increase of 53% on their previous terms.
Since March 2022, our retention rate across our Fully Managed
spaces has been 73%.
At the Hickman, E1, the building is now fully let following
letting the remaining office space to a digital transformation
company, which will occupy 6,757 sq ft on the second floor on a
Fitted five-year lease with an option to break at year three.
At our Piccadilly Buildings, San Carlo, the award-winning
restaurant group, signed a lease for a new Cicchetti, occupying
7,000 sq ft over ground and basement floors, across two units.
Two acquisitions for GBP53.0 million
In May 2023, we acquired the freehold of 141 Wardour Street, W1
(33,717 sq ft) for GBP39.0 million (GBP1,156 per sq ft). The
building is currently vacant, has been stripped out and benefits
from planning consent for a comprehensive refurbishment. Set in the
heart of Soho, prominently positioned on the corner of Wardour
Street and Broadwick Street and within a five minute walk of the
new Tottenham Court Road Elizabeth line station. The consented
scheme will provide best-in-class office and restaurant
accommodation arranged over lower ground, ground and six upper
floors, with private terraces across the 4th to 6th floors and a
communal roof terrace.
Also in May, we acquired the freehold interest in Bramah House,
65/71 Bermondsey Street, SE1 for GBP14.0 million, reflecting a 5.9%
net initial yield and a capital value of GBP892 per sq ft. The
15,696 sq ft freehold building is currently multi-let with a WAULT
of 3.2 years to expiries. The property is located opposite our
existing building at Woolyard and will augment our growing Fully
Managed campus on Bermondsey Street.
Following our substantial refurbishment, both buildings will
provide outstanding Fully Managed office space designed to meet
evolving customer demands and GPE's net zero carbon commitments.
Following these acquisitions GPE's portfolio of Fitted and Fully
Managed spaces, together with our Fully Managed Partnerships, now
totals 418,000 sq ft.
Resolution to grant planning permission received at Minerva
House, SE1
During the quarter, Southwark Council resolved to grant planning
permission for the high-quality redevelopment of Minerva House,
SE1. The proposals, designed by Ben Adams Architects, are to re-use
and extend the existing office building on the Southbank of the
River Thames, creating inviting spaces that meet customers' current
needs and GPE's four strategic sustainability pillars, as well as
targeting Net Zero Carbon.
With a potential start later this year, the plans will take the
overall commercial space provision to 140,300 sq ft, an increase of
approximately 53% on the existing area. The public realm between
Minerva House and Southwark Cathedral will be significantly
enhanced and a new cut-through across the site for the publicly
accessible Thames Path will be opened up. In addition, the scheme
will create c.400 new jobs across the site.
AGM
Our Annual General Meeting will be held later this morning at
The Royal College of Nursing, 20 Cavendish Square, London, W1G
0RN.
Great Portland Estates plc +44 (0) 20 7647 3000
Toby Courtauld, Chief Executive
Nick Sanderson, Chief Financial & Operating
Officer
Stephen Burrows, Director of Investor
Relations and Joint Director of Finance
FGS Global +44 (0) 20 7251 3801
James Murgatroyd
Gordon Simpson
For further information see www.gpe.co.uk or follow us on
Twitter at @GPE_plc
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END
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