Great Portland's 1Q NAV up on West End office values

LONDON: British landlord Great Portland Estates posted a first-quarter rise in portfolio valuation, driven by an uptick in the worth of its West End assets and near-term development schemes, and said it expected investor demand to continue.

The company said on Thursday, July 21 its portfolio was valued at £1.7 billion (RM8.23 billion), up 3.8% since end-March and up 14.7% year-on-year.

It said the main drivers of the quarterly valuation rise were West End offices, which rose 3.7%, and its near-term development schemes, up 7.5%.

Great Portland's EPRA net asset value was 375 pence per share, up 27% since end-June 2010. EPRA NAV is a benchmark set by the European Public Real Estate Association.

"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.

"A key mainstay behind this demand is investor expectations for further rental growth as the supply of available space to let falls faster than its rate of replenishment," he said.

"We remain encouraged by both the levels and spread of tenant demand across our portfolio, helping us to maintain our investment properties at almost full occupancy and deliver decent rates of rental growth," he said.

Great Portland's void rate was 3%, from 2.7% at end-March. — Reuters