GPE to keep acquisitions coming in second half

The top team at GPE sees no slowdown in its acquisition drive as it lines up £1bn of London targets. Announcing interim results for the six months to 30 September, chief executive Toby Courtauld said the company had steered through “challenging political and economic conditions and fluctuating sector sentiment over the first half”. Its £350m rights issue and £400m of debt issuance have allowed it to strike several deals in recent months. “With a circa £1bn pipeline of potential purchases under review, we expect to transact further in the second half, supplementing our exceptional on-site and near-term development programme, which already covers 1.2m sq ft and will generate significant surpluses,” Courtauld said. GPE sealed 28 new leases and renewals generating annual rent of £10.5m across 94,900 sq ft during the six months. Its portfolio valuation of £2.5bn was up by 0.8% for offices and 1.2% for retail. EPRA NTA was marginally up to 475p per share. Profit after tax was £29.7m, back in the black after a loss of £253.4m a year ago. “With deep customer demand for prime, sustainable spaces in our core markets and an increasing shortage of such supply, we are well placed to capitalise,” Courtauld said. “Our leasing is strong, beating the valuer’s estimates by 7% on average with our spaces currently under offer some 16% ahead. We expect our rents to continue rising, reaffirming our rental growth guidance, as we fill our well-timed and located, sustainable developments and refurbishments, growing our rent roll by some 99% from our existing commitments alone.” Photo © GPE