Great Portland points to strong leasing momentum after recent deals

(Sharecast News) - London-focused real estate group Great Portland Estates has signed nine fully managed leasing deals over the past three weeks worth £7.2m of annual rent.

The lettings, which represent 33,500 square feet of office space across six of its buildings, were secured at 14.1% ahead of estimated rental value, generating a 112% cash flow beat to an equivalent 'ready to fit' lease.

The deals have all been signed since 10 March, when GPE completed its largest-ever fully managed letting with retailer Next at 31 Alfred Place, WC1.

Total flex leasing across GPE's portfolio for the financial year ended 31 March now totals 123,300 sq ft, securing £24.5m in annual rent, as the company pointed to "strong demand" for its fully managed properties.

GPE's prime fully managed schemes at 31 Alfred Place and SIX in Farringdon are now 74% and 52% let, respectively, and "confidence remains high for leasing prospects" at its next building launches this summer.

"Our strong leasing momentum for our fully managed offer demonstrates that we are creating a product that the market wants and is willing to pay a premium for," said chief financial and operating officer Nick Sanderson.

"Our fully managed spaces are now generating annualised net operating income of £16m, up more than 60% in the last six months and ahead of our targets."