What we’ve focused on

Our priorities in action

A sharp focus on our strategic priorities has helped drive a strong performance against our benchmarks for 2011. Looking ahead we anticipate that the major projects already identified will deliver good returns over the next 12 months.

Activity in 2010/11

Priorities for 2011/12


Operational results

Effect on KPIs

Key initiatives

Execution risks

Potential benefit to KPIs

Investment management


  • Investments of
    £213 million made
  • New £129 million JV set up with Starwood
  • Nine properties acquired
  • 80% of acquisitions were "off market" or outside a competitive process

See City Place House and City Tower case study

See investment transactions

  • Acquisitions since our rights issue have delivered an annualised ungeared IRR of 37%
  • Higher debt has boosted NAV per share growth through higher gearing
  • Investments at low point in
    cycle have been welcomed by shareholders driving TSR

See KPI analysis

Our acquisition criteria:

  • Central London commercial property
  • Value enhancement opportunities
  • Asset management, redevelopment or refurbishment potential
  • At the end of May 2011 we had several properties under offer worth over £100 million
  • Lack of attractive properties being placed on the market
  • Insufficient market liquidity
  • GPE captures few potential investment "leads"
  • Pricing of possible investments becomes too high
  • Enhances TPR if acquisitions made at low entry price
  • Boosts NAV share growth through increased gearing
  • Positive acquisitions newsflow can assist in investor relations

Asset management

Drive rental
value growth

  • Portfolio rental value (ERV) rose by 10.8% during year
  • Leases signed exceeded March 2010 rental value by 9.6%
  • 121 new leases, rent reviews and renewals completed

See Britton Street case study

  • Higher ERVs enhance asset value and improve TPR
  • Rental income provides
    dividend support driving total shareholder return
  • Occupancy rate improved via strong leasing

See KPI analysis

  • Leasing at 160 Great Portland Street and Elsley House
  • Rent reviews at Mount Royal
  • Refurbishment at City Tower
City Tower
  • Occupational market falters
  • Wrong rental levels sought for local market conditions
  • Poor marketing of GPE space
  • Weak tenant retention
  • Improves TPR through income uplifts
  • NAV per share growth underpinned by higher ERVs
  • Occupancy rate rises through effective leasing



  • Six new schemes on site
  • 2.2 million sq ft new term development pipeline
  • Cost of committed schemes is £129.2 million

See development case study

See development overview

  • Development properties have increased in value over the year by 16.9% driving relative TPR and NAV per share
  • GPE's proportion of development is one of the highest in the UK sector attracting investors and creating strong TSR

See KPI analysis

  • Marcol House, W1
  • 100 Bishopsgate, EC3
  • Hanover Square, W1
  • Wigmore Street, W1
Wigmore St
  • Market declines are amplified by development schemes
  • Poor project management
  • Contractor/supplier failure
  • Quality of buildings does not meet market standard and competing schemes attract better tenants

See Risk management overview

  • TPR enhanced by operational gearing of development projects
  • NAV per share growth supported by development profits and higher leverage
  • Occupancy rate boosted when schemes leased