GREAT Portland Estates (GPE) said the value of its property assets increased by 3.8 per cent in the first quarter this year, driven by demand for West End offices and near-term development schemes.
The London property developer said its portfolio valuation increased by £58.4m to £1.6bn in the three months through June. Net asset value (NAV) increased by 4.2 per cent to 376p a share from 362p at the end of March.
The depreciation of the pound together with a lack of new office space in the West End fuelled demand from international investors, with London assets viewed as a safe haven. Rental value grew 2.1 per cent.
“Investor demand for central London commercial property continued unabated during the quarter and with limited supply, we expect much of it to remain unsatiated for some time to come,” said chief executive Toby Courtauld.
In May, the company was also given the green light to build Hanover Square in Mayfair into 205,400 square feet of office space, retail units and residential apartments, further boosting the value of its overall portfolio by 25 per cent.
GPE also sold four non-core assets for £111m -- 7.2 per cent ahead of book value.
Shares in the company, up 48.6 per cent over 12 months, dipped 0.8 per cent yesterday to close at 436.1p.