Our business

Development overview

The development business has had a successful year leasing upgraded space, progressing projects and expanding the pipeline to support future growth.

We have six schemes on-site – five in the West End and one in Mid-town, with the opportunity to start further schemes by the end of 2012 giving us a near-term programme of 2.2 million sq ft that could be delivered by 2014. Beyond that, our pipeline includes a further 10 projects giving us a total programme of 3.1 million sq ft, covering 52% of GPE’s existing portfolio.

Leasing of refurbishment and development projects.

Over the last six months we secured over £7.2 million per annum in income on our committed schemes bringing total secured income to £8.5 million. In May 2011, we agreed to relocate an existing tenant, Double Negative, from 45 Mortimer Street, W1 to 160 Great Portland Street, W1 which is undergoing a comprehensive upgrade following the departure of Telewest. Double Negative has signed a new 20 year lease at a rent of £4.8 million per annum with an incentive package the equivalent to 32 months of rent. They will move into tailor made, highly specified space in the second half of 2012. The transaction with Kurt Geiger announced in November was a similar example of helping our customers find expansion space when they need it. Kurt Geiger committed to a new 48,000 sq ft headquarters building at 24/25 Britton Street, EC1 where the refurbishment works are underway. They will move from their existing 11,000 sq ft in our building at 75 Bermondsey Street, SE1 in autumn 2011 having agreed a 15 year lease at £1.5 million p.a. At 20/30 Great Titchfield Street, W1 we were pleased to arrange a 10 year lease with Heineken UK for £0.6 million per annum for 13,300 sq ft of newly refurbished space.

Committed schemes and pipeline

Development

Anticipated finish

New building area1

Total project cost
£m2

Proposed ERV
£m2

Secured income
£m

Committed
184/190 Oxford Street, W1 Complete 26,400 24 1.7 1.7
24/25 Britton Street, EC1 Sept 11 51,300 6.8 1.6 1.6
23/24 Newman Street, W1 Oct 11
25,200
11.3 0.2

Marcol House,
289/295 Regent Street, W1
Oct 12
103,300
50.3 6.9
0.3
160 Great Portland Street, W1 May 12
88,200
26.7 4.9
4.9
79/97 Wigmore Street, W1 June 13
111,400
31.7 3.1

Total of committed 405,800 129.2 18.4 8.5
Near-term non-committed1
11 projects
2012-2014 1,823,300 49.5
Pipeline
10 projects
844,900
Total programme
27 projects, 52% of GPE's existing portfolio
3,074,000

1 Areas are in sq ft and at 100%.
2 For those held in JV, costs are shown as GPE’s share.