- Property company Great Portland Estates upgraded its portfolio rental value guidance following, driven by the positive performance of its office portfolio in the first half of the year.

Portfolio rental value was now expected to grow in a range of 2.0% to 5.0% for the financial year.

For the six months ended 30 September 2021, portfolio valuation was up 2% to £2.5 billion with offices up 2.8% and retail down 0.8%, and developments up 29.7%.

Rental values increased by 1.6%, but yield contracted 1 basis points, giving a total property return of 3.7%, with capital return of 2.2% versus MSCI Central London (quarterly index) of 1.3%.

'Whilst activity is not yet back to pre-COVID levels, it is clear that London's economy and its property markets are recovering with office workers and shoppers both returning to the main commercial districts of the capital,' the company said.

'Simultaneously, we are seeing healthy growth in office jobs which is driving renewed occupier demand for City and West End offices, up by more than 50% since this time last year.'

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