London, UK - June 12, 2024: Great Portland Estates (GPE) has successfully raised gross proceeds of £350m to capitalise on its pipeline of new opportunities in central London. The London-based landlord launched a fully underwritten three-for-five rights issue back in May to raise the funds through the issue of 152m new shares at a price of 230 pence each.

GPE confirmed that it had received acceptances from existing shareholders in respect of 96.8% of the new shares. The deal’s underwriters will place the remainder of the issue, with final figures to be published at a later date.

Toby Courtauld, chief executive of GPE, expressed his optimism in the press about the returns they can generate from both their £1.4bn pipeline of potential acquisitions and across their existing HQ and Flex offerings. He said, "The combination of the Capital’s disrupted investment market and the increasingly evident supply drought of high-quality spaces in our core market of the West End, means we are optimistic about the returns we can generate."

The fundraising comes as demand for the group’s office spaces across London has continued to return to pre-pandemic levels. After the pandemic, tenants have become increasingly picky and tend to favour best-in-class buildings with less space due to work-from-home practices.

GPE intends to use £168m of the proceeds from the Rights Issue to commit to capex for its Soho Square Estate and a new development, The Courtyard. This will take total capex on committed GPE schemes from £498m to £666m.

The group acquired the Courtyard via a property swap with the City of London Corporation. GPE swapped its interest in 95/96 New Bond Street while simultaneously acquiring the long leasehold interest at The Courtyard.

Great Portland Estates' successful fundraising marks a significant step in its growth strategy. With the raised funds, the company is well-positioned to capitalise on new opportunities in central London, further enhancing its portfolio and offering to tenants.