Great Portland Estates follows Land Securities and British Land in seeing profits tumble
Great Portland Estates (GPE) has become the third developer in as many days to say Brexit has hit its numbers as the firm turned in a half year loss.
The developer on Make’s £350 million Rathbone Place scheme racked up a £62.7 million pre-tax loss in the six months to September from a £371 million pre-tax profit for the same period last year. The valuation of its portfolio dropped 3.7% to £3.8 billion.
GPE also posted a 17% fall in revenue to £57.4 million, down from £69.5 million for the same period last year.
Toby Courtauld, chief executive, said: “The referendum result has had a negative effect on business confidence in London which will likely result in lower economic growth.
“As a consequence, we can expect London’s commercial property markets to weaken during this period of uncertainty. However, the broad spread and depth of its economic activity and a growing population will, we believe, help to ensure that London maintains its position as a truly global city and Europe’s business capital.”
Rathbone Place is the developer’s largest project yet and will see social media giant Facebook move into new offices at the scheme on a former Royal Mail depot on Newman Street in London’s West End.
Earlier this week, both Land Securities and British Land, the developers on Rafael Vinoly’s Walkie Talkie tower at Fenchurch Street and Rogers Stirk Harbour & Partners’ Cheesegrater respectively, said uncertainty caused by the decision to leave the EU in June had hit the pair with profits at both crashing into the red.
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