Great Portland Estates enjoys strong letting value growth

New London letting values were up 17.9% for Great Portland Estates in the third quarter compared to the end of its last financial year, as it secured 15 letting agreements.

In the three months to the end of December 2015, lettings were agreed on 122,600 square feet of its properties, generating a total combined rent for the FTSE 250 company of £7.7m.

The headline letting was a 15,300 sq. ft. flagship retail space at 73/89 Oxford Street, opposite the new Crossrail station, pre-let for 20 years to retailer Benetton at £2.6m a year, with the building due for completion in April 2017.

At 240 Blackfriars Road, just east of Waterloo station, Great Portland's joint venture with the BP pension fund has leased the final available two office floors for a rent of £61 per square feet, generating an annual rent of £1.5m.

Across the rest of the portfolio a further 83,400 square feet of lettings, generating £4.4m in annual rent, was signed at a premium to March 2015 rental values of 27.1%.

"We are delighted to welcome Benetton into the portfolio," said portfolio director Neil Thompson said. "Securing one of the world's top retailers in this high quality development, opposite a Crossrail station, continues the exciting regeneration of the eastern end of Oxford Street."

He said a further £2.7m of space was currently under offer and that the company's 1.2m square feet development pipeline "continues to attract significant leasing interest".

Shares in Great Portland were up 1.4% to 804.5p by 1143 GMT on Tuesday.