London-focused property investment company Great Portland Estates (LSE:GPOR) completed a £350 million rights issue in June to seize what it sees as the “significant opportunity” emerging in the central London property market.
Noting a “correction in asset values” over the last 18 months, GPE sees the central London market as trading in line with levels last seen in 2009, in real terms.
“We are currently tracking approximately £1.3 billion of acquisition opportunities… which we believe are capable of being purchased at or below replacement cost, with GPE well placed to take advantage of these opportunities given our best-in-class workspaces, sustainability credentials and differentiated flex offering,” the group said in a Thursday trading update.
GPE welcomed a bevvy of new leases and renewals in the third quarter, with notable strength in the fully managed space where £3.1 million worth of new annual leases was signed.
Shares were up 0.8% in early Thursday trades.