Developer鈥檚 profit up 78% on previous year, with portfolio valued at 拢1.1bn
Developer Great Portland Estates has posted a 78% rise in profit in preliminary annual results published today.
The real estate firm recorded pre-tax profit of 拢50.8m 鈥� up 78% on the 2010 results. As of 31 March the firm鈥檚 portfolio is valued at just over 拢1.1bn representing an increase of 13.5%, or 拢168.8m, on the previous year.
In total the results gave them a return of 22.4% on their property investments, higher than the industry average for London.
GPE spent only 拢213m on acquisitions during the year, and the firm claimed that left them with substantial cash and undrawn facilities of 拢518.5m.
GPE recently gained planning permission for its Hannover Square development. It has also reached an agreement with Crossrail and TFL for a 205,400ft2 mixed-use scheme following the completion of the Crossrail Bond Street station.
Commenting on the results chief executive Toby Courtauld said: 鈥淟ondon鈥檚 investment markets continue to benefit from an excess of demand for assets over supply and, with prices having increased by more than 25% from their lows, it will be more challenging to generate the sorts of returns we have achieved from acquisitions made over the past 18 months.
鈥淎s a result, our focus is shifting to the delivery of our major development programme.鈥�
鈥淚n our occupational markets, conditions continue to improve for landlords. Demand from occupiers has picked up and is running at long-term average rates. This, combined with the lack of new supply and low vacancy rates will produce further rental value increases over the next two to three years.鈥�
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