Great Portland Estates (LSE:GPE) reported a strong finish to its financial year, completing £70.9 million in annual rental agreements across 88 new leases and renewals. Market lettings were achieved at an average of 10.3% above the March 2025 estimated rental value (ERV), highlighting continued demand for high-quality office space.
In the fourth quarter alone, the company secured £24.4 million in rent from 28 leasing transactions, with deals completed at 15.8% above ERV. Performance was supported by strong occupier interest in fully managed and fitted workspaces, including a significant 52,300 square foot pre-let to Quantexa at Minerva House, also known as The Delft, which was agreed well above ERV expectations.
Rent reviews during the period were also robust, settling 49% above previous passing rent and 11.1% ahead of ERV benchmarks. The group completed its largest development at 2 Aldermanbury Square, which has been fully pre-let to Clifford Chance, further reinforcing demand for prime, centrally located office space.
On the capital recycling front, Great Portland Estates completed £490 million of disposals at 2% above book value, including the sale of wells&more, W1 to Felberg Capital for £172 million. The transaction reflected a 5% net initial yield and a valuation of £1,483 per square foot.
“Despite a volatile macroeconomic backdrop, this has been an excellent finish to the year,” said Toby Courtauld.
“We signed £24.4 million of leases in the quarter and delivered a record £70.9m of deals for the year, 10.3% ahead of ERV, reflecting the strength of demand for high quality, well located space and the momentum in our Fully Managed offer.”
Leave a Reply