Great Portland Estates says that interest for high-quality West End space is outweighing supply, with rental value growth to continue throughout 2007.
The company issued a business update for the fourth quarter to 31 March, saying that new lettings had achieved rents between £47.50 and £65 per sq ft.
The group sold two properties in the quarter, including an office building on New Cavendish Street, W1, for £14.2m – yield of 4.3%.
Development progress saw the practical completion of four schemes in the West End: 180 Great Portland Street 60-62 Margaret Street phase one of 222 Regent Street and Kent House, Market Place.
JP Morgan analyst Harm Meijer said that the company was one of his top sector picks because of its strong outlook for rental growth in the West End and development pipeline of more than 1.3m sq ft.
“We believe that GPE is one of the few UK companies with strong momentum in valuation and the ability to surprise on the upside,” he said.
