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Great Portland Estates optimistic after general election

The central London-focused developer sees improved activity in its market following political clarity

Great Portland Estates PLC (LON:GPOR) said the final quarter of the year has started “well” with £9.2mln of lettings currently under offer at a 6.9% premium to last year.

The FTSE 250-listed property developer said it is in “great shape” against potential macro-economic challenges, while December’s election favoured transaction activity.

READ: Great Portland Estates says London to remain “Europe’s business capital”

Last month it signed a new £450mln revolving credit facility linked with sustainability performance.

The company, which focuses on central London buildings, completed a £200mln share buyback, acquiring 27.8mln shares at an average price of £7.20, which pushed net debt up to £403mln.

In the three months to 31 December the firm completed 12 new leases and renewals, down 25% on the same period in 2018, while rent per square foot was 29% lower at £53.

Analysts at broker Liberum said the quarterly performance confirmed “robust” trading performance.

Shares were flat at 948.8p on Thursday at the opening bell.