How we create value In order to unlock potential we apply our specialist skills to reposition properties to produce high quality, sustainable spaces that our customers demand. Our disciplined approach to allocating capital shapes our activities, ensuring we operate in tune with London’s cyclical property markets to maximise returns.
We apply our specialist skills to reposition properties… Acquire
Reposition
– Disciplined capital allocation approach; must be accretive to existing portfolio.
During the year, we bought 7/15 Gresse Street, W1, to augment our Flex office offer. We anticipate securing vacant possession next year to allow us to convert the building into our Fully Managed offering.
– Through lease restructuring, the delivery of flexible space, refurbishment or redevelopment.
See more on page 29
– Manage risk through pre-letting, joint ventures and forward sales.
– Tired, inefficient properties, often with poor EPC ratings, with angles to exploit. – Attractive central London locations supported by infrastructure improvements/local investment.
– Deliver high quality sustainable spaces into supportive markets that meet and exceed customer needs.
– Deliver climate resilient buildings that integrate market-leading sustainability standards, flexibility, amenity, wellbeing and technological innovation.
– Discount to replacement cost and typically off-market. – Off low rents and low capital values per sq ft.
– Enhance the local environment and public realm.
– Optionality: flexible business plans. – Opportunity to enhance sustainability credentials and grow our Flex portfolio.
– Deliver a lasting positive social impact in our communities.
See more on our investment activities on page 29
Repositioning buildings is key to adding value. This year, our activities focused on further evolving our flexible office offers, pre-letting our on-site development scheme and preparing our near-term development pipeline.
See more on pages 24, 26 and 28
See more on our development activities on pages 23 to 26
Sustainability touches everything we do
…underpinned by key resources and relationships… Our stakeholder relationships
Our portfolio and sustainability
– Intense, supportive, customer-focused approach to understand customers’ needs. Utilising regular customer feedback to create bespoke action plans.
– 100% central London, in attractive locations well served by local infrastructure with enduring customer demand.
– Strong levels of customer satisfaction. – Open relationship with debt and equity providers based on clear investment case and transparent disclosure. – Deep relationships with key suppliers (including contractors) and joint venture partners. – Positive engagement with local communities, local authorities, and planning departments.
– High customer retention, diverse customer base and off low rents from which to grow. – Continual repositioning of buildings to improve the customer experience, future proof value and enhance the environment in which they are located. – Located in markets with high barriers to entry playing to our strengths. – Positioned for future growth; 24% of portfolio in development programme. Potential £1.1 billion commitment across four near-term schemes.
See more on our stakeholder relationships on pages 56 to 62
See more on our portfolio and sustainability on pages 34 to 36 and 37 to 51
…to create value
+27.8
Net promoter score, outperforming the UK office average of +2
£631k
Social value created
See our KPIs on pages 14 and 15
12 Great Portland Estates plc Annual Report 2022
85
GPE employees participating in the GPE community day
+6.1%
Like-for-like portfolio valuation growth1
100%
BREEAM ’Excellent’ completions
£403k
Invested through our Decarbonisation Fund
