Great Portland Estates sells London building for £180m as rents pick up

Real estate company Great Portland Estates reported its strongest quarterly performance since the Covid pandemic struck and said it had sold a central London office building for £181.50m.

The company said rent collections had improved during September to its best level since December 2019 while leasing momentum in London continued to recover as people return to the office after months of working from home.

It said 84% of September quarter rent has been collected to date.

"Occupier demand is robust, focusing on prime grade A space and flex office products, both of which play to our strengths," said chief executive officer Toby Courtauld.

For the quarter to 30 September 2021, £14.3m of new lettings were secured, with market lettings 10.4% ahead of March 2021 estimated rental value.

A further 14 leases were under offer, which would deliver approximately £3.3m a year in rent, with market lettings 7.3% above March 2021 ERV, and £38m of new annual rent in negotiation.

Looking ahead, the company said it expected 'healthy demand' to persist.

GPE, which is focused on London properties, said its joint venture with BP Pension Fund - Great Ropemaker Partnership - sold 160 Old Street, in the Silicon Roundabout business district, to a fund advised by JP Morgan Global Alternatives at a 5% premium to its March valuation.