Great Portland Estates report valuations up 17.5% in 12 months driven by West End offices

Central London property values continued to experience solid growth in the quarter to 31 December 2010 as a result of strong investor interest and rental value improvements, according to Great Portland Estates today in their Q3 update, for an annual increase of 17.5%.

GPE's own properties and shares in joint ventures rose £23.9 million to £1.55 billion, which after acqisitions and other distortions are removed is a LFL uplift of 3% compared to 2.6% for Q2. Within this West End offices were the star performers-up 4% compared to West End retail being up just 0.4%.

The increases have boosted NAV, which after paying a dividend of £9.7 million still increased by 3.8% to 326p per share (Q2- 314p). GPE net debt rose £38 million to £323.2 million, but as values climbed the LTV moved up 0.9% on Q2 to 31.9%.

Toby Courtauld, Chief Executive, said,

"Central London's property markets continued to strengthen during the quarter, driven by a pick up in leasing activity and sustained demand for quality investment properties. With the supply of available space to let falling and rents now rising, we expect these supportive conditions to persist throughout 2011.

In our own portfolio, activity levels have remained high; we have maintained an encouraging tenant retention rate and a low void rate; we have delivered a number of significant asset management wins; we've continued to find accretive acquisitions; and we have made good progress across our 1.9 million sq. ft. near term development programme, adding one further scheme during the quarter. And with low financial gearing giving us plenty of capacity for further expansion, we look to the future with confidence".

Shares in GPE closed last night at 356.3p having experienced a steady rise through the year, valuing the firm at £1.114 billion.

Looking for Businesses for Sale or Commercial Property for Sale agents, find lettings and investment property in the UK? www.ukbusinessproperty.co.uk