Restructuring of Rent Roll
Great Portland Estates PLC
03 April 2003
3 April 2003
Great Portland restructures 7% of rent roll to reduce void risk
Great Portland Estates P.L.C. ('GPE') announces today three lease restructuring
transactions across its portfolio affecting almost 7% of its existing rent roll.
In the City, GPE has successfully retained its largest single occupier, Willis
Group, having completed the early renewal of its lease at 1 Camomile Street,
London EC3. Willis' old lease was due to expire in September 2004.
The new lease on the 75,695 sq. ft. mid 1980's office building is for a term
expiring on 24th March 2011 at a rent of £2.659 million per annum (£35.13 per
sq. ft.). The tenant has taken the building in its existing unrefurbished state
and has been granted a rent free period totalling 33 months. The tenant will be
carrying out an extensive internal refurbishment to bring the office space up to
a modern standard.
The transaction aligns the income expiry profile from the building with GPE's
adjoining 42,500 sq. ft. holding at 80 Bishopsgate (let to Nordea Bank until
March 2011). The company is working up plans with architects Kohn Pedersen Fox
for a major redevelopment of the combined site, immediately to the south of the
proposed Heron Tower, on expiry of the occupational leases in 2011. 93% of the
income is now secured until March 2011 with the majority of the remaining 7%
expiring between 2004 and 2007.
In Covent Garden, GPE has regeared four leases over 22,281 sq. ft. held by CSS
Stellar Management Limited, accounting for approximately 63% of the space within
the building. Two of the tenant's leases (half the space) expired last month,
and the remainder in mid 2015 at an aggregate rent of £853,500 per annum. The
tenant has taken four new ten year leases with 6 months rent free at an
aggregate rent of £845,925 per annum, reflecting £38 per sq. ft.
In Mayfair, GPE has completed an early lease renewal of 18,345 sq. ft. at 14
Hanover Square to Harbottle & Lewis. The firm of solicitors, who occupy all of
the office space, have taken a new 14 year lease with a break at the 10th year,
at an annual rent of £530,000 (equating to £30.75 per sq. ft. on the office
space) with 10 months rent free. The accommodation is basic and GPE have paid
Harbottle & Lewis £700,000 as a contribution to refurbishment works.
Toby Courtauld, GPE Chief Executive, said: 'Over the last 12 months we have been
working hard in a difficult market to keep our voids down in order to preserve
rental income and protect valuations. Our current void level is approximately
3% against a market average in central London of approximately 10%. Each of
these transactions has enabled us to avoid the very real prospect of facing
lengthy voids and significant capital expenditure in a depressed leasing market.
In the City, we have consolidated our medium term development ambitions in one
of the strongest locations in the square mile whilst maintaining occupancy
levels at almost 100%'.
Contact:
GPE Toby Courtauld - Chief Executive 020 7580 3040
Rob Noel - Property Director 020 7580 3040
Finsbury Group Ed Orlebar 020 7251 3801
This information is provided by RNS
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