GPE pipeline ‘enviable’

Great Portland Estates (GPE) has reported “an enviable development pipeline with the potential for significant surpluses in the near-term”.

Toby Courtauld, chief executive, said at the company’s full-year results that London’s investment markets continued to benefit from an excess of demand for assets over supply and, with prices having increased by more than 25 percent from their lows, it would be more challenging to generate the sort of returns the company had achieved from acquisitions made over the past 18 months.

“As a result, our focus is shifting to the delivery of our major development programme,” he said.

GPE reported pre-tax profit after revaluation surplus, up from £156.6m to £261m. The portfolio valuation rose 15.5 percent since March 2010.

Courtauld said: “In our occupational markets, conditions continue to improve for landlords. Demand from occupiers has picked up and is running at long-term average rates.” This combined with the lack of new supply and low vacancy rates would produce further rental value increases over the next two to three years.