Great Portland Estates (GPE), one of the capital’s largest landlords, has recently announced plans to raise £350 million through a rights issue. This move is aimed at enabling the company to invest in new properties across London, taking advantage of emerging opportunities in the commercial real estate market.
The rights issue, which was fully underwritten, will involve the issuance of 152 million new shares at a price of 230 pence each. Existing shareholders will have the opportunity to purchase a set number of these new shares, allowing them to participate in the company’s growth and expansion plans.
GPE, a London-listed property firm with a portfolio of over 30 properties in the West End and the City, highlighted the attractive acquisition and development opportunities in central London’s commercial real estate market. The company aims to deliver attractive returns to its shareholders by capitalizing on these opportunities.
The fundraising comes at a time when demand for office spaces in London is returning to pre-pandemic levels. The market has become more competitive due to a shortage of high-quality office space, with tenants increasingly preferring best-in-class buildings with modern amenities.
A significant portion of the proceeds from the rights issue will be allocated to capex for GPE’s Soho Square Estate and a new development called The Courtyard. The company also recently completed a property swap with the City of London Corporation, acquiring the long leasehold interest at The Courtyard in exchange for its interest in 95/96 New Bond Street.
Analysts view GPE’s decision to raise equity as a positive signal for the London office market, indicating that the company sees value and growth opportunities in the current market conditions. The company’s strong operational performance, as reflected in its leasing activity and portfolio value, further reinforces its position as a key player in the London real estate market.
Toby Courtauld, the chief executive of GPE, expressed satisfaction with the company’s performance and highlighted the appeal of its office spaces in central London. With a full portfolio and strong leasing activity, GPE is well-positioned to capitalize on the evolving market dynamics and deliver value to its shareholders.
In conclusion, GPE’s decision to raise £350 million through a rights issue reflects its confidence in the London commercial real estate market and its commitment to seizing new opportunities for growth and expansion. The company’s strategic investments and strong operational performance position it as a key player in the competitive London property market.
