GPE’s business model

How we manage our business
  • Operating approach

    GPE owns and manages a portfolio of well located properties worth £1.7 billion including joint ventures. Our team of specialists seeks to manage and grow this asset base profitably through numerous value-add strategies. Our operating approach has the following critical elements:

    • Detailed analysis of property and economic cycles
    • Intense focus on local London markets using a strong network of contacts
    • Use of development and refurbishment to upgrade rental values
    • Frequent acquisitions, disposals and joint venturing to improve portfolio returns
    • Creation, monitoring and execution of individual property business plans
    • Close tenant relationships
    • Use of flexible and moderate levels of leverage to enhance equity returns
    • Careful attention to sustainability matters


    Our integrated team has specialisms in:

    Investment, Development, Asset Management, Finance

  • Strategic priorities

    In early 2009, a difficult economic and property market environment led us to set three key priorities for the last financial year. To help with executing our first priority, we raised £166 million of equity in June 2009. For the forthcoming year these priorities have evolved to allow GPE to benefit from the expected recovery by adopting a more expansive strategy.

    • 2009/2010 priorities
    • Profitable investments
    • Maintain high occupancy
    • Minimal development
    • 2010/2011priorities
    • Further selected acquisitions, often in joint venture
    • Manage portfolio to drive rental value growth
    • Commence several new development schemes
    See progress against targets arrow-right
  • Our markets

    London’s property markets are cyclical and suffered during the 2007–09 downturn. More recently they have recovered. Our portfolio is centred on the more resilient and less volatile West End locations.

    Our quarterly valuation movement and our locations Market analysis arrow-right

    The risks we face

    The key risks which impact our business are set out below.

    Key risks

    Economy and property market

    • Central London real estate market underperforms
    • Economic recovery falters

    Investment and development

    • Missed investment opportunities
    • Failure to maximise income
    • Poor development decisions

    Financing

    • Limited availability of further capital
    • Adverse interest rate movements
    • Inappropriate capital structure

    People

    • Retention of key staff
    • Insufficient resources

    Regulatory

    • Adverse regulatory regime
    • Health and safety incidents
    Risk Management arrow-right
  • Performance in 2010

    Despite the challenging market, the Group kept to its key priorities and performed well as shown by the key performance indicators versus their benchmarks.

    Group KPI summary 2010 benchmark
    Total Shareholder Return 81.9% 59.8%
    Adjusted net assets per share growth 15.5% 6.6%
    Total Property Return 18.4% 9.4%
    Return on Capital Employed 18.9% 9.6%
    Group KPIs arrow-right Remuneration and the link to KPIs arrow-right