Great Portland Estates (LSE:GPOR) said demand for high-grade property in London’s West End and centre has bounced back strongly in recent months.
The property group said £14.3mln of new leases were signed in the quarter to 30 September 2021 or 10.4% more than the March quarter, while a further £38mln of new rent was under negotiation.
Rental collections are also the best since the start of the coronavirus pandemic with 84% of September rent collected to date compared to 76% and 73% for June and March quarters at a similar point.
Last month, GPE’s joint venture with the BP Pension Fund sold 160 Old Street in North London for £181.5mln, a 5% premium to the March 2021 valuation.
Toby Courtauld, chief executive, said: "We have had a strong quarter. Occupier demand is robust, focusing on prime Grade A space and flex office products, both of which play to our strengths.
"Testament to this, in the quarter we pre-leased all the offices at 50 Finsbury Square, EC2 and successfully completed the letting programme at our first fully fitted and managed space at 16 Dufour's Place, W1 at an average rent of £191 per sq ft.
"Looking ahead we expect healthy demand to persist and today we have a further £3.3mln of lettings under offer 7.3% ahead of ERV and £38mln of new annual rent in negotiation.”