Great Portland Estates warns demand for offices is at a record low as it crashed to £155m half-year loss
London landlord Great Portland Estates has crashed to a £155m half-year loss
Great Portland Estates warned the pandemic has sent demand for offices to record lows as it crashed to a £155million half-year loss.
The property firm swung from a £44million profit a year ago, after a £176million, or 6.6 per cent, drop in the value of its portfolio to £2.49billion.
This included an 18 per cent drop in retail property values, with offices falling by 2.4 per cent.
Take-up of space in central London hit a record low of 2.2m square feet during six months to September 30, well below the 6.3m square feet normally leased during the period, as many staff work from home.
Workspace, another London office provider, separately posted a half-year loss of £110million after rent income took a 39 per cent haircut.
Great Portland expects rents and property values in London to fall another 5-10 per cent.
‘Covid continues to dominate the economic backdrop and disrupt the activities of many of our occupiers across London,’ it said. It only collected 83 per cent of rents in the six months.