Great Portland seals record rents as demand in West End heats up

 
Kasmira Jefford
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WEST End landlord Great Portland Estates posted a 27.6 per cent rise in net asset value (NAV) last year as the heart of the capital continues to experience hot demand and short supply of new office space.

Great Portland, whose schemes include its 200,000 square feet Hanover Square site above Bond Street’s Crossrail station, said its NAV per share now stood at 569p.

Its properties jumped by 18.7 per cent in value in the year to 31 March and are now worth £2.7bn compared with £2.3bn last year.

The group said it made 84 lettings last year securing a record £25.9m of annual rents, with a further £3.3m secured since the start of the new financial year.

“With London’s growth outpacing a resurgent UK economy, we can expect conditions in our markets to strengthen further; employment levels are on the rise while order books are growing, suggesting that the space needs of the Capital’s businesses will follow suit,” chief executive Toby Courtauld said.

“With the current and prospective supply of space to let in central London remaining tight, we can expect rents to continue growing,” he added.

Great Portland’s rental value grew by 7.2 per cent across its West End offices portfolio and 12.1 per cent for retail.

The group secured 760,000 sq ft of planning consents in the year and now has a total development programme of 2.2m sq ft.