WEST End property developer Great Portland Estates posted a 9.2 per cent leap in first-half net asset value and said it expected the strengthening economy to support the capital’s property market as more companies find confidence to move.
The company, which owns offices and shops in central London, said diluted net asset value per share rose 9.2 per cent to 487p over the six months to 30 September and that its portfolio value rose by 6.7 per cent to £2.5bn.
“London’s businesses are, once more, investing for growth and our limited available space to let is attracting significant interest, enabling us to lease at rates ahead of estimated rental values,” he said.
Many companies had shelved or delayed office moves during the downturn but are now finding a shortage of suitable space after construction plummeted during the period.
Great Portland said rental values rose 3.6 per cent over the period, compared to a three per cent rise in the benchmark Investment Property Databank Central London index.
Pre-tax profits jumped 103 per cent to £18.1m.
City A.M. Reporter