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Commercial Property News
GPE report Q1 portfolio value up 4.6%
In it's Q1 interim statement today Great Portland Estates, the London West End landlord, said it's like for like portfolio had increased in value by 4.6% in the quarter. Rental values have also increased, by 2.5% in West End offices and 1.8% in West End retail.
During the period 27 new leases worth £1.1 million per annum to GPE were signed, and the void rate is stable at 3.6%. There were two disposals totalling £20.1million, a 10.4% premium to book value.
Toby Courtauld, Chief Executive, said,
"London's property investment markets continued to recover during the quarter although at a lesser pace than the unsustainably high rates of the previous two quarters. We expect this less urgent mood to persist for the balance of the year with investors looking to rental growth to support further price increases.
In our own portfolio, we have been encouraged by the demand levels from prospective tenants which has helped support rental growth across the portfolio. Whilst we expect sentiment to remain relatively volatile in the near term, looking two or three years ahead, we maintain our confidence in London as a global financial centre. With a prospective supply/demand balance that favours the landlord, we can expect rents to rise over this timescale.
With some strong acquisitions behind us, a first class development programme ahead of us and low financial gearing giving us plenty of capacity for further expansion, we look to the future with confidence."
During the period 27 new leases worth £1.1 million per annum to GPE were signed, and the void rate is stable at 3.6%. There were two disposals totalling £20.1million, a 10.4% premium to book value.
Toby Courtauld, Chief Executive, said,
"London's property investment markets continued to recover during the quarter although at a lesser pace than the unsustainably high rates of the previous two quarters. We expect this less urgent mood to persist for the balance of the year with investors looking to rental growth to support further price increases.
In our own portfolio, we have been encouraged by the demand levels from prospective tenants which has helped support rental growth across the portfolio. Whilst we expect sentiment to remain relatively volatile in the near term, looking two or three years ahead, we maintain our confidence in London as a global financial centre. With a prospective supply/demand balance that favours the landlord, we can expect rents to rise over this timescale.
With some strong acquisitions behind us, a first class development programme ahead of us and low financial gearing giving us plenty of capacity for further expansion, we look to the future with confidence."
Thu, 22nd Jul 2010