Great Portland Estates plc (LSE:GPE) has strengthened its West End presence through the £51 million acquisition of a 155-year leasehold interest in 10 South Crescent, WC1. The 72,605 sq ft office and retail property is located close to Tottenham Court Road’s Elizabeth line station and is currently fully let to a single occupier for a further four years at a rent well below prevailing market levels.
GPE plans to reposition the building into a high-quality, low-carbon headquarters and retail destination, with upgraded amenities and new roof terraces. The asset offers meaningful rental upside, with nearby transactions reported at rents exceeding £125 per sq ft compared with the property’s current passing rent of around £67 per sq ft. Acquired at a net yield of 6.8%, the yield is expected to rise to approximately 7.1% once the vacant retail space is leased.
The transaction aligns with GPE’s strategy of targeting value-add opportunities within its core West End market. It marks the sixth such acquisition completed since the company’s 2024 rights issue, taking the estimated total capital committed to these projects to around £440 million. Management noted that these investments have been secured at a significant discount to replacement cost, reflecting confidence in long-term demand for well-located central London offices and the potential to generate shareholder value through active asset management.
Looking ahead, Great Portland Estates’ prospects are supported by constructive guidance from recent earnings updates and ongoing strategic activity. However, this is tempered by concerns around cash flow performance and largely neutral technical indicators. While the shares appear undervalued, broader economic headwinds remain an important factor for investors to consider.
More about Great Portland Estates plc R.E.I.T.
Great Portland Estates plc (GPE) is a UK real estate investment trust focused on the ownership, management and repositioning of prime office and retail properties in central London, particularly within the West End. The group’s portfolio centres on Grade A headquarters buildings and managed workspace in amenity-rich locations, with a strong emphasis on refurbishment and decarbonisation to meet evolving occupier requirements.
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