Great Portland Estates buys two West End developments

Great Portland Estates has bought the special purpose vehicles which own Marcol House, a Grade II listed, office and retail development site and 23/24 Newman Street, an existing office building for £10m upfront and a share of potential future profits.

The news comes as the property investment and development group announced a six-month pre-tax loss of £29.8m, down from a £146.2m loss for the same period in 2008.

In its half-year results the group also reported that loss per share for the period was 12.2 pence, down on last year's value of 60.5 pence per share.

Adjusted earnings for the period fell to £13.3m from £14.4m this time last year.

Net rental and related income for the period increased to £21.8m from £21.5m in the comparable period.

The board has declared an interim dividend of 3 pence per share, which will be paid on 5 January 2010.

The group's two acquisitions in London's West End from Istithmar World coincides with “the formation of a profit share and debt structuring arrangement with Eurohypo to develop the properties”.

Marcol House at 289-295 Regent Street has planning consent for 111,548 ft² and 23/24 Newman Street has 25,200 ft² with planning consent for conversion to 22 residential apartments.

Toby Courtauld, chief executive of Great Portland Estates, said: “This deal adds two high-quality West End developments to our exciting and substantial programme, scheduled to complete in 2012 at a time when we think conditions in the office market will favour the landlord.”