GPE has become a net buyer of London offices for the first time in a decade, as chief executive Toby Courtauld said the investment market has hit its trough.
Announcing results for the year to 31 March, Courtauld said the company was a net buyer for the first time since 2013, acquiring three properties off-market for £122.9m and making two small non-core sales.
“We believe the central London investment market is now at or around its trough and is turning in our favour with real property values having fallen to 2009 levels, triggered by elevated inflation and high interest rates,” Courtauld added.
“As a result, we fully expect to add to our growth prospects and have identified a compelling set of accretive acquisition opportunities.”
The company is raising £350m through a rights issue to fund new deals.
Revenue was up by 4.6% at £95.4m, but the company’s loss soared to £307.8m from £164m a year ago.
In a deal revealed alongside the results, GPE has acquired a West End office block from the City of London Corporation to add to its growing flex portfolio.
The company has struck a property swap with the City of London Corporation to acquire the long leasehold at the Courtyard, 1/3 Alfred Place, WC1, for £28.6m, with the simultaneous sale of its short leasehold interest in 95/96 New Bond Street, W1, for £18.23m.
GPE will make a net cash payment to the City corporation of £10.4m on completion in January 2025.
GPE will refurbish the 62,000 sq ft vacant office building as a fully managed site, a project the company expects to take some £62m of investment.
Investment manager James Harrop-Griffiths said: “This transaction represents a unique opportunity to recycle capital from a low-yielding retail asset into a fantastic office development opportunity for our fully managed business plan… We are creating a ‘flex cluster’ within an already popular area of the West End as we advance towards our ambition to grow our flex portfolio to more than 1m sq ft.”
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