精东影视

Great Portland Estates (GPE) has announced bumper results for year-ended March 31, and its intention to build out a further 1.2m sq ft of developments.

The London-focused firm reported that its portfolio valuation was up 18% to 拢3.2bn buoyed by the company having purchased over 59% of their properties at 鈥渙pportune prices鈥� during the financial crisis.

GPE completed two major development schemes in the year, including 精东影视鈥檚 new home at 240 Blackfriars, leaving the firm with a programme of 1.2m sq ft of committed and near-term developments, the largest it has undertaken. The developer has a further 12 uncommitted schemes in its longer term pipeline.

The firm reported that it expected to see a pick-up in the 鈥渟peculative development pipeline as developers respond to stronger occupier demand levels and the prospect of rental growth.鈥�

However, it also warned that it could be several years before any meaningful new space is realised in the West End due to a 鈥渟hortage of contractor capacity which is both reducing market access to new entrants or those developers without meaningful pipelines of work and supporting construction cost inflation.鈥�

Toby Courtauld, chief executive, added that London鈥檚 economy has continued to outpace that of the rest of the UK and that the firm expected this to continue, as long as the uncertainty 鈥渟urrounding the outcome of the proposed EU referendum does not damage London鈥檚 appeal as a business capital.鈥�

Since the year-end on the 31 March GPE has completed another four lettings and has 17 lettings under offer.

Rental income was also up by 10.3%  due to an 鈥渋ncrease in tenant demand along with record low vacancy levels in central London鈥� pushing pre-tax profits up by 21% to 拢507.4m and leaving the company with only a 2% vacancy rate.

He added that 鈥渇alling vacancy rates and the supply of new space to let in the near-term remaining extremely tight鈥� meant GPE could look forward to further rent increases.