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- Great Portland Estates taps into deposits to collect 69% of rents
Great Portland Estates (GPOR) has collected 69% of rents for the current quarter, and in doing so has tapped into rent deposits.
The London office developer said collection figures were at 58% excluding deposits. From its office portfolio it had received 74% and from its associated retail/hospitality units it had collected 28%.
The group had now received 82% of rent for the previous quarter (70% excluding deposits). Great Portland said it had £21.6m of rent deposits/bank guarantees, of which £2.5m was anticipated to be utilised against outstanding June rent.
Despite the impact of covid-19, the group has completed leasing deals in the April to June quarter worth £4.3m, 4.4% ahead of March 2020 estimated rental values (ERV), including 39,970 sq ft to Exane at 1 Newman Street on 15 year term (no break) at £100 per sq ft with 33 months rent free.
A further 11 lettings are under offer for £12.1m (GPOR share: £7.0m), 4.3% ahead of March 2020 ERV including one office pre-let
In its development portfolio, which covers 56% of its existing portfolio, it has committed to three projects covering 414,600 sq ft, of which 42% is pre-let or under offer. The schemes have a forecast profit on cost of 14.7%.
All sites are open with £47.5m of capital expenditure to come. Two of the schemes are due to complete in the next four months and the third in Q3 2021.
The group’s near-term development pipeline consists of three schemes totalling 821,600 sq ft, and its total pipeline consists of 10 schemes totalling 1.4m sq ft.
The group has total liquidity of £390m and a low loan to value of 15.0% and weighted average interest rate of 2.2%. It has substantial headroom in its debt covenants, with values having to fall 68% before a breach.
GPOR : Great Portland Estates taps into deposits to collect 69% of rents