GPE is in buoyant mood, with more than 100,000 sq ft under offer as it moves into its second quarter.
In a trading update this morning, the London-focused investor and developer said the “positive activity” of the first quarter would continue despite wider macro-economic turmoil.
Chief executive Toby Courtauld boasted of “positive activity over the first quarter with healthy leasing, excellent progress at 50 Finsbury Square, EC2, which is already 98% prelet or under-offer, and the completion of our acquisition of 6/10 St Andrew Street, EC4, for our fully managed offer”.
The REIT’s LTV has risen slightly to 22.2% from 20.5%, with net debt rising to £550.6m from £502.3m, but it is sitting on cash and undrawn facilities of £343m.
GPE has around £970m of capex in hand, including refurbishments, the £15.1m needed to complete the 50 Finsbury Square development and a further £267m to deliver 2 Aldermanbury Square, EC2.
Despite fears of a dip in the second half of the year, Courtauld was optimistic. “The second quarter has started well with our customer-first approach delivering encouraging levels of enquiries from prospective customers attracted to our brand of high-quality, well-located space, more than 93% of which is within walking distance of an Elizabeth Line station. Today we have £9.5m of lettings under offer, at a premium to March 2022 ERVs, with an additional £33m under negotiation.”
While acknowledging the considerable headwinds, Courtauld said GPE was in a good state to weather the storm. “Whilst the current macro-economic backdrop is expected to be volatile in the short-term, we remain convinced of the long-term, enduring appeal of our capital city and its property markets to businesses and investors alike. With our clear strategic focus, strong balance sheet, opportunity rich portfolio and experienced team, we remain confident in our outlook.”
GPE went home from last night’s EG Tech Awards with two trophies, celebrating its innovation as a business and the Bridging the Gap award for director of innovation James Pellatt.
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