GPE has pledged further expansion into flex space as leasing continues to strengthen.
The London estate signed £16.1m of leases in the nine months to the end of December, at 10.4% above March ERV. A further £6m of rent is currently under offer.
Chief executive Toby Courtauld said: “Despite rising barriers to entry in our markets, including a more challenging planning regime, our substantial capex programme is set to deliver the very best, sustainable spaces into a market starved of such supply; our focus on HQ development and our flex offer is meeting customer demand that is increasingly discerning.”
He added: “With our strong balance sheet, plentiful liquidity and recycling opportunities, we remain well placed to capitalise on opportunities as they arise.”
GPE has recently committed to the refurbishment of 141 Wardour Street, W1, to provide 29,900 sq ft of new fully managed flex space in the heart of Soho. The scheme is expected to complete in early 2025, delivering an expected profit on cost in excess of 19% and a development yield in excess of 6.5%.
GPE added that development works were progressing well at the fully prelet 2 Aldermanbury Square, EC2. GPE is substantially increasing the size of the building from 176,000 sq ft to 322,600 sq ft.
The development is currently anticipated to deliver a 12.4% loss on cost from the commitment date, as a result of market yield expansion driven valuation declines to date. However, it said that from the September valuation the scheme is expected to deliver £28.3m of future profit.
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