Great Portland Estates chief executive Toby Courtauld has highlighted the negative impact the European Union in/out debate is having on the UK real estate market.
Courtauld said in a trading update this week that he expected “increasing uncertainty ahead of an anticipated referendum on Britain’s relationship with the EU”, but at present “the level of tenant demand remains good for the limited quantity of available office and retail space, particularly in our core West End market”.
A survey conducted by Carter Jonas last month showed that 65% of industry respondents opposed a departure from the EU and that occupiers and investors were expected to delay decision making until after the referendum.
GPE also reported that it was undertaking its largest development programme, which comprises nine schemes totalling 856,700 sq ft with an end value of £475.5m. All nine are due to complete within the next two years.
During the last quarter of 2015 the company completed 15 new lettings totalling 122,600 sq ft and reduced its vacancy rate to 2.7%.
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