Quarterly Valuation

Great Portland Estates PLC
17 January 2007


17 January 2007

Great Portland portfolio value up 6% in Q3


The Directors of Great Portland Estates plc ('GPE') announce the quarterly
valuation of the Group's properties as at 31 December 2006, the details of which
can be found in the attached tables (see appendix 1). (Please copy and paste the
following link into your web browser: 
http://www.rns-pdf.londonstockexchange.com/rns/6365p_-2007-1-16.pdf )


Highlights of the quarter:

  • Valuation of portfolio including share of joint ventures up 6.1% at £1,417.8 
    million.
  • Adjusted NAV per share* up 7.2% to 550p.
  • REIT NNNAV per share* up 8.4% to 530p.
  • Valuation of acquisitions up 20.1% net of costs.
  • Portfolio ERV growth of £2.5 million (up 3.7%).
  • West End office ERV increased by £2.0 million, or 4.6%.
  • Strong letting activity continues with £1.4 million of new rents secured
    through lettings.
  • Conversion to UK-REIT status on 1 January 2007 eliminating £126.7 million of 
    contingent capital gains tax by paying a conversion charge of £28.4 million.
  • Over £87 million of capital transactions including £52.0 million of
    purchases and £35.3 million of sales.

* Estimate based on valuation increase and other items, see table below.

Toby Courtauld, Chief Executive of GPE said, 'As we enter the REIT regime, the
Group is in great shape. We have continued to find good acquisitions in a
fiercely competitive market and our growing development programme is both well
timed and well located, being predominately in the supply-constrained West End
of London. With take-up of office space running ahead of the long term average
and rents growing across the Capital, we look forward to continuing this strong
performance during 2007'.

Valuation

The valuation of the Group's properties as at 31 December was £1,417.8 million
including our share of joint venture assets. All properties, including
acquisitions and our share of joint ventures, rose in value by £81.4 million or
6.1% since 30 September 2006. More than half of the investment portfolio
valuation uplift was due to asset management activity and the creating of rental
growth with the balance coming from yield compression.

Rental values grew across the portfolio by 3.7% during the quarter, building on
the 6.3% recorded for the six months to 30 September 2006. West End office
rental values were 4.6% higher whilst City and Southwark rental values rose by
2.0%. The Group average office rental value remains low at approximately £38.20
per sq ft, some £6 per sq ft higher than the average office rent passing. The
wholly owned portfolio true equivalent yield fell 13 basis points over the
quarter and now stands at 4.9% (4.8% for joint venture properties).

Estimated NAV per share and financing

The portfolio valuation movement of £81.4 million for the three months to 31
December 2006 has been used to estimate pro forma NAV per share amounts.
Adjusted NAV per share as at 31 December 2006 was estimated at 550p (up 7.2% on
September 2006), whilst REIT NNNAV per share was estimated at 530p (up 8.4% on
September 2006). Adjusted NAV per share saw less growth in the quarter because
it did not benefit from a reduced mark to market of debt following the debenture
buy back carried out in December 2006. Details are set out in the table below.


Proforma unaudited estimated balance sheet highlights

  
                                   £m   Pence per          % 
                                            share     Change
------------------------------------------------------------
Adj NAV
At 30 September 2006            928.1         513

Valuation uplift                 81.4          45
Interim dividend                 (6.1)         (3)
Debenture buyback                (9.1)         (5)

At 31 December 2006             994.3         550      +7.2%

REIT NNNAV
Mark to market of debt           (6.4)         (4)
REIT Conversion charge          (28.4)        (16)

At 31 December 2006             959.5         530      +8.4%

At 30 September 2006            884.3         489
------------------------------------------------------------

Note: The pro forma balance sheet does not include retained earnings for the 
      quarter


Net debt at 31 December 2006 was £417 million, up £38 million from 30 September
2006 due to the completion of the Hanover Square/Prudential Property swap and
capital expenditure on developments. Gearing at 43% was unchanged from the level
as at 30 September 2006.

On 1 January 2006 the Group converted to UK-REIT status and is due to pay a
conversion charge estimated at £28.4 million by 14 July 2007, removing £126.7
million of contingent Capital Gains Tax.

Investment activity

Two acquisitions were made by the Group during the quarter, both in the West End
and adjoining existing holdings on New Bond Street and on Oxford Street, for a
total consideration of £52.0 million including costs. They performed strongly
during the quarter rising in value by an average of 20.1%. One sale was
completed during the quarter at an aggregate price of £35.3 million, in line
with its 30 September 2006 valuation.

Letting and development

Letting activity remains healthy across the business. Of note, the final floor
of Met Building, Percy Street, W1 was let during the quarter at a rent of £52.50
per sq ft whilst two of the recently refurbished floors at Bond Street House, W1
have been let at an average rent of £81.00 per sq ft.

The near-term development pipeline is progressing well. 180 Great Portland
Street, W1 was completed on time and on budget in December and we are confident
as to its letting prospects. Refurbishments of 31,000 sq ft at Elsley House,
Great Titchfield Street, W1 and 22,000 sq ft at Kent House, Market Place, W1 are
both due to complete in February. Meanwhile, construction work is progressing
well at both the 90,000 sq ft 60 Great Portland Street, W1 (formerly Knighton
House) and at the 110,000 sq ft Titchmor scheme on Mortimer St, W1.


Contacts:

Toby Courtauld      Chief Executive    Great Portland Estates plc   020 7647 3042
Timon Drakesmith    Finance Director   Great Portland Estates plc   020 7647 3034

Finsbury
James Murgatroyd                                                    020 7251 3801
Gordon Simpson                                                      020 7251 3801




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