Toby Courtauld, chief executive of Great Portland Estates, says that there is likely to be a hiatus in investor decision-making while Britain’s exit from the EU is negotiated.
He said: “Whilst tenant interest levels are currently healthy for our limited available space, it is likely that the uncertainty created by the EU referendum result will have a negative impact on economic growth in London. In the near-term, we expect confidence to reduce and some business investment decisions to be deferred whilst negotiations to establish our trading arrangements with the EU are undertaken. As a result, we can expect London's commercial property markets to weaken during this period of uncertainty with the benefits of lower bond yields and weaker sterling offset by reduced rental growth prospects.”
However, he said that his own company was well placed. “Following three years of net property sales, our balance sheet has never been stronger with gearing at record low levels, giving us significant financial capacity to take advantage of any market weakness,” he said.
In a trading update, Great Portland Estates also listed progress on its various construction projects in the capital.
The mixed-use Rathbone Square development is now mostly clad and tower cranes come down this month.
At 160 Old Street, EC1, (formerly 148 Old Street) demolition works are complete and the main contract has begun to transform the existing 97,800 sq ft building into around 161,900 sq ft of office and retail space. Target completion is late 2017.
Construction of a new-build office and retail scheme at 30 Broadwick Street, W1, is on programme to complete in September.
Construction is also on schedule at 73/89 Oxford Street, W1, opposite the Dean Street entrance to the Tottenham Court Road Crossrail station.
At Tasman House, 59/63 Wells Street, W1, the demolition of the existing 1950s building is complete and the main construction contract has started.
Great Portland Estates current projects
|
Committed schemes |
Anticipated finish |
New building area |
Cost to complete |
|
Rathbone Square, W1 |
267,000 |
||
|
- Commercial |
Mar 2017 |
111.5 |
|
|
- Residential |
Jun 2017 |
151,700 |
|
|
160 Old Street, EC1 |
Dec 2017 |
161,900 |
26.8 |
|
30 Broadwick St, W1 |
Sept 2016 |
91,800 |
9.5 |
|
73/89 Oxford St, W1 |
May 2017 |
90,700 |
31.7 |
|
Tasman House, W1 |
Oct 2017 |
37,300 |
18.7 |
|
84/86 Great Portland St, W1 |
Dec 2016 |
23,100 |
6.6 |
|
78/82 Great Portland St, W1 |
Sept 2016 |
18,900 |
4.6 |
|
90/92 Great Portland St, W1 |
Jul 2016 |
8,800 |
0.6 |
|
Total |
851,200 |
210.0 |
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