Cash boost for Great Portland Estates investors

The London landlord is returning the cash after the sale of two long-let commercial properties, 240 Blackfriars Road and 30 Broadwick Street, both in central London, left it in a position of “unprecedented financial strength”.

Chief executive Toby Courtauld added: “We are proposing to return the net proceeds of £306m to shareholders, reflecting our ongoing commitment to balance sheet discipline while also ensuring that we retain significant financial flexibility for both the next programme of developments and acquisitions.”

GPE also updated on trading, and called the three months to 31 December 2017 “another strong quarter of leasing”. The firm said there had been 21 new lettings signed, a total of 208,600 sq ft, generating annual rent of £10.7m, of which its share was £7.2m.

Quarterly leasing was 2% ahead of March 2017’s estimated rental value (ERV).

There had also been “good progress” on development schemes, with a residential development in Rathbone Square and another at 55 Wells Street, both in central London, completed with 93% either pre-sold or under offer.

Mr Courtauld said: “In spite of the macro-economic and political uncertainties, tenant interest remains healthy across our portfolio with £9.6m of lettings currently under offer.”

Around 89% of GPE’s portfolio is located near to London Crossrail stations that are scheduled to open in late 2018, which helped with the firm’s “long-term potential”, added Mr Courtauld.

The £306m is expected to be returned through the issue and redemption of a new class of redeemable B shares, and is subject to shareholder approval.