TIDMGPOR
RNS Number : 9846N
Great Portland Estates PLC
05 October 2021
5 October 2021
Strong office leasing: GPE trading update
Great Portland Estates plc (GPE) today publishes its trading
update for the quarter to 30 September 2021.
Toby Courtauld, Chief Executive, said: "We have had a strong
quarter, maintaining our leasing momentum as central London
continues to reopen and people return to the office, whilst
crystallising our returns through the sale of 160 Old Street, EC1.
Occupier demand is robust, focusing on prime Grade A space and flex
office products, both of which play to our strengths. Testament to
this, in the quarter we pre-leased all the offices at 50 Finsbury
Square, EC2 and successfully completed the letting programme at our
first fully fitted and managed space at 16 Dufour's Place, W1 at an
average rent of GBP191 per sq ft. Looking ahead we expect healthy
demand to persist and today we have a further GBP3.3 million of
lettings under offer 7.3% ahead of ERV and GBP38 million of new
annual rent in negotiation, including in our near-term pipeline
where construction is expected to start early next year. This
continued demand for our spaces, combined with our sizeable
development pipeline and plentiful liquidity, means we remain well
placed to capitalise on the expected growth in the London and UK
economy."
Strong leasing momentum maintained; strongest quarterly rent
collection since December 2019
-- GBP14.3 million of new annual rent signed in the quarter to
30 September, market lettings 10.4% ahead of March 2021 ERV,
including GBP8.5 million pre-let
-- GBP3.3 million of further lettings under offer, 7.3% ahead of March 2021 ERV
-- c.GBP38 million of new annual rent in negotiation,
demonstrating demand for prime offices and best in class flexible
spaces
-- First fully fitted and managed space at 16 Dufour's Place
fully let, average rent GBP191 per sq ft
-- Improved September quarter rent collection; strongest
quarterly performance since December 2019
Crystallising surpluses at 160 Old Street, EC1
-- 160 Old Street, EC1 sold for GBP181.5 million, reflecting 5% premium to March 2021 valuation
Excellent progress across our development programme; major
pre-let secured, resolution to grant planning achieved at French
Railways House & 50 Jermyn Street, SW1
-- Good progress at our major office refurbishment at 50
Finsbury Square, EC2 (128,100 sq ft); offices now 100% pre-let,
targeting Net Zero Carbon, completion expected Q4 2022
-- Momentum maintained on four-near term schemes (909,400 sq ft)
with forecast capex of c.GBP800 million; resolution to grant
planning achieved at French Railways House & 50 Jermyn Street,
SW1 in July
-- s106 signed at 2 Aldermanbury Square, EC2 ahead of potential
320,500 sq ft development start in early 2022, strong occupier
interest
Strong leasing quarter: GBP14.3 million of new lettings, 10.4%
ahead of ERV
During the quarter we saw a continued demand for prime office
spaces and best in class flexible spaces which has translated into
another strong leasing performance.
The leasing highlights included:
-- 19 new leases and renewals signed generating annual rent of
GBP14.3 million (our share: GBP12.8 million), with market lettings
10.4% ahead of March 2021 ERV;
-- Total space covered by new lettings, reviews and renewals was 174,200 sq ft; and
-- A further 14 leases under offer (58,700 sq ft) which would
deliver approximately GBP3.3 million p.a. in rent (our share:
GBP3.3 million), with market lettings 7.3% above March 2021 ERV as
well as c.GBP38 million of new annual rent in negotiation.
Leasing Transactions
----------------------------------------------------------------
Three months Six months Six months
ended 30 September ended 30 September ended 30 September
2021 2021 2020
New leases and renewals completed
Number 19 35 9
GPE share of rent p.a. GBP12.8 million GBP25.5 million GBP6.1 million
Area (sq ft) 174,200 358,800 77,300
Rent per sq ft GBP82 GBP76 GBP78
Rent reviews settled
Number - 3 5
GPE share of rent p.a. GBPnil million GBP2.0 million GBP3.7 million
Area (sq ft) - 28,400 59,100
Rent per sq ft GBPnil GBP72 GBP62
------------------------- -------------------- -------------------- --------------------
Note: Includes joint ventures at our share
Notable leasing transactions during the quarter included:
-- Inmarsat Global Limited pre-let for all the office space at
50 Finsbury Square, EC2, 121,800 sq ft on a 20-year lease (15-year
break) paying an annual rent of GBP8.5m, 11.2% above March 21
ERV;
-- At our completed development Hanover Square, W1, we completed
two new office leases at Medici Courtyard (15,400 sq ft) to KKR and
UPL for a combined GBP1.85m p.a. on a 14-year (six-year break) and
15-year (five-year break) term respectively. Taken together, 95% of
the office space at the scheme is now let. We have also completed
two further retail lettings totalling 6,400 sq ft; and
-- Our Flex+ space at 16 Dufour's Place, W1 (16,300 sq ft), our
fully fitted, fully managed space, is now fully let within six
months of launch at an average of GBP191 per sq ft, 10.5% above
March 21 ERV, with the two most recent lettings in excess of GBP200
per sq ft. We continue the roll out of our fully fitted and fully
managed offering to other buildings, with a further three lettings
recently completed.
Improving rent collection; 84% of September rent collected to
date
To date, we have collected 84% of all quarterly rents (which
represent 97% of this quarter's rent roll), three working days
after the 29 September quarter day. This is ahead of the previous
two quarters at an equivalent point in time, which were 73% and 76%
for March and June respectively and the strongest since December
2019. We collected 73% in respect of retail, hospitality and
leisure occupiers and 87% for all other sectors.
Crystallising surpluses at 160 Old Street, EC1
In September, the Great Ropemaker Partnership (GRP), our 50:50
joint venture with BP Pension Fund, sold 160 Old Street, EC1 to a
fund advised by J.P. Morgan Global Alternatives. The headline price
of GBP181.5 million reflected a 5% premium to the March 2021
valuation.
The building was comprehensively refurbished by GRP completing
in 2018 to provide 166,300 sq ft of high-quality accommodation
arranged over lower ground, ground and eight upper floors. The
office space is 70% let to Turner Broadcasting to 2034. The balance
of the office and retail space is let to a variety of occupiers
including Robert Bosch Limited, Pusher Limited and Sensat Surveying
Limited together with a small amount of vacant space and some
near-term asset management opportunities. The total contracted
annual rental income was GBP7.9 million, with a weighted average
unexpired lease term of approximately 10.3 years to the earlier of
breaks or expiries.
Strong development progress
After successfully completing the development of 1 Newman
Street, W1 in July and handing over three of the seven office
floors to Exane, we have continued to make excellent progress
across our 1.4 million sq ft development pipeline.
One committed scheme; 50 Finsbury Square, EC2, offices now 100%
let
At 50 Finsbury Square, EC2, the refurbishment of the 128,100 sq
ft building, including construction of the new roof pavilion, is
progressing well, and we expect completion in late 2022. Our
extensive repositioning will extend the office floor plates within
the existing frame of the building, create a large reception with a
concierge as well as an improved retail, leisure and amenity offer.
The new building will be a sustainability, wellbeing and technology
exemplar delivering on all four pillars of our Sustainability
Statement of Intent and is expected to be our first certified as
net zero carbon. We committed to the refurbishment at the start of
the year and, testament to the quality of the building, in August
we pre-let all of the offices to Inmarsat Global Limited (see
above).
Good development progress; resolution to grant planning achieved
at French Railways House & 50 Jermyn Street, SW1
Following being awarded resolution to grant planning permission
at 2 Aldermanbury Square, EC2 in June, we have signed the s106
Agreement with the City of London, appointed a contractor for the
demolition, enabling and substructure works and are in discussion
with a number of potential main contractors ahead of our proposed
January 2022 start date. Our proposed development will
substantially increase the size of the building to 320,500 sq ft
(up from 176,000 sq ft) and will incorporate our sustainability
aspirations from the outset, with the aim of delivering a net zero
carbon building five years ahead of our current target of 2030. The
scheme also includes a number of public realm and amenity
improvements that will have a positive impact on the local area and
improve accessibility to the western entrance to the Liverpool
Street Crossrail station. To date we have been greatly encouraged
by the strong occupier interest in the scheme.
In July, we obtained resolution to grant planning permission at
French Railways House and 50 Jermyn Street, SW1, part of our
Piccadilly Estate. Our proposed major office-led redevelopment will
provide 64,800 sq ft (up from 54,600 sq ft) of new Grade A space.
The proposed highly sustainable building will be in keeping with
surrounding conservation area and heritage assets, will reuse
substantial elements of the existing building's substructure to
reduce its carbon footprint and will include a significant amount
of new amenity including a number of external spaces including
communal roof terrace. The development of the building is subject
to Crown consent.
Contacts:
Great Portland Estates plc +44 (0) 20 7647 3000
Toby Courtauld, Chief Executive
Nick Sanderson, Chief Financial and Operating
Officer
Stephen Burrows, Director of Financial Reporting
and IR
Finsbury Group +44 (0) 20 7251 3801
James Murgatroyd
Gordon Simpson
Forward Looking Statements
This document may contain certain 'forward-looking statements'.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Actual outcomes and results may differ materially from any outcomes
of results expressed or implied by such forward-looking
statements.
Any forward-looking statements made by or on behalf of GPE speak
only as of the date they are made and no representation or warranty
is given in relation to them, including as to their completeness or
accuracy or the basis on which they were prepared. GPE does not
undertake to update forward-looking statements to reflect any
changes in GPE's expectations with regard thereto or any changes in
events, conditions or circumstances on which any such statement is
based.
Information contained in this document relating to GPE or its
share price, or the yield on its shares, should not be relied upon
as an indicator of future performance.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUSRURAOURRUA
(END) Dow Jones Newswires
October 05, 2021 02:00 ET (06:00 GMT)
Great Portland Estates (LSE:GPOR)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Great Portland Estates (LSE:GPOR)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
