GPE collects 84% of annual rent

Great Portland Estates has received 84% of the £89.4m of rent billed in the year ending March, warning that an outstanding £14.6m may not be recovered. The landlord said it will make an “appropriate provision” against the write-off in its forthcoming annual results. GPE has collected 82% of rent owed for the 25 March quarter, with 44% of retail, hospitality and leisure tenants meeting their payments. Notably, GPE said its office occupier “utilisation” levels stand at 17% of full occupancy. Around 22% of its shops were open last week. Both are expected to increase following the reopening of non-essential retail and outdoor hospitality venues this week. Ten new lettings measuring a combined 58,400 sq ft were completed during the quarter, generating £2.9m annual rent for GPE (£4.4m in total). GPE said an additional £35m of new annual rent is being negotiated. Chief executive Toby Courtauld said: “The most recent Covid-19 lockdown has disrupted the activities of many businesses across London, resulting in a number of occupiers still being unable to meet their rental commitments. “However, the ongoing vaccination programme and government roadmap to easing lockdown restrictions is supporting renewed optimism, which we are seeing reflected in improved rent collection, greater letting activity and increased enquiry levels on available space. “In particular, prime offices and best-in-class flexible spaces continue to be highly sought after and in relatively short supply, both trends which we expect to persist.” Separately, the firm highlighted it is in discussions with Southwark Council with the aim of submitting a planning application for a redevelopment at Minerva House, SE1, in the coming quarter.   To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette