Great Portland Estates downbeat over growth in London’s commercial property market after swinging to a full-year loss

 
Shruti Tripathi Chopra
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Great Portland Estate is a key West End developer (Source: Getty)

Great Portland Estates slumped to pre-tax loss of £140.2m for the year to 31 March compared with a £555m profit a year earlier, the FTSE 250 property developer said today.

The group expects the "uncertain political and economic environment" to weigh on rental levels across London’s commercial property markets.

The figures

The West End property firm reported net sales of £656m in the period which included leasing Facebook a 227,324 square feet office space in the Rathbone Square development in Fitzrovia.

The firm reported 52 new lettings (282,700 sq ft) securing an annual income of £20.5m, including nine development lettings , while market lettings were 0.6 pe cent higher than estimated rental values in March 2016.

Dividends were up 9.8 per cent compared to 2016 at 10.1p.

Read more: Shaftesbury points to West End's long record of resilience as profits rise

What Great Portland Estates said

Toby Courtauld, chief executive, said: "While the weight of international capital looking to invest in London remains high, we expect the uncertain political and economic environment to weigh on rental levels across London’s commercial property markets in the near term.

"Looking longer-term, we are optimistic that the capital will retain its status as one of only a handful of truly global cities," Courtauld added.

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