Developer Great Portland Estates is set to start work on 11 new developments, totaling around 167,000 sq m as it prepares plans for more projects.
As Great Portland unveiled its half year results to 30 September 2010, which showed the value of its estate increasing by 7.3 per cent since March - to £1.5 billion, including its share of joint venture property - it said it also has a further 100,000 sq m of potential developments at the design stage.
Seven of the 11 schemes could start by the end of 2011 and could be completed by mid 2013.
Releasing further details on its joint venture with Canadian developer Brookfield, the statement said: “The 100 Bishopsgate Partnership, our joint venture with Brookfield Properties, has made good progress in preparing this major City development for a potential start date during 2011, subject to a variety of partner approvals. Detailed design and specification studies have identified project improvements which could allow an increase in lettable area up from 75,700 sq m to 86,000 sq m.”
Other schemes currently at the preperation stage include Walmar House, Regent Street, W1 and Fetter Lane, EC4 for a potential start over the next 18 months.
Great Portland made an adjusted profit before tax of £15 million at the half year stage, up 11 per cent on the same period a year earlier.
Chief executive Toby Courtald said: “Growth rates in London’s investment markets have slowed, as expected, over the past four quarters. Whilst there continues to be a surfeit of buyers over sellers, particularly from overseas, we believe these more sedate conditions will persist into 2011 as the uncertain macro environment will continue to affect sentiment in the short term. Looking ahead, we remain confident that London will retain its status as a leading financial centre.”
He added: “We continue to be encouraged by the level of tenant demand across our portfolio, and we have delivered another quarter of good letting activity, with solid rental value growth and a consistently low void rate. This bodes well for our 1.8 million sq. ft. near term development programme where we expect to start seven schemes during 2011 to add to the four currently on site.”
Great Portland had previously said it intends to increase the size of its estate and today’s announcement is a continuation of these plans.