Our business

Development

In November 2009, we highlighted that we felt the time was right to increase our development exposure once more to take advantage of improving occupational demand and constrained supply. We have recently started work at two sites, Marcol House, 289/295 Regent Street and 23/24 Newman Street, W1, have a further seven projects which can start by June 2011 and are examining ways to accelerate selected schemes. The Group's exciting total programme potentially stretches to 2.8 million sq ft across central London, timed to benefit from the recovery in occupational markets. Taken together, these opportunities cover 53% of the Group's properties by area and, when finished, will see their net lettable area increase by 80%.

We divide the total development programme into two segments depending on the start date. The near-term group of nine schemes can all be on site by the end of 2011. The pipeline projects will be started after 2011.

Near-term programme and pipeline

Earliest
start
Anticipated
finish
New
building
area†
Cost
£m
Started
Marcol House, Regent Street, W1 Aug 12 102,500 55.5
23/24 Newman Street, W1 Sep 11 25,200 11.1
2010/2011
184/190 Oxford Street, W1 Sep 10 Dec 10 26,500 2.0
240 Blackfriars Road, SE1* Sep 10 Aug 13 233,500 59.8
12/14 and 43 Fetter Lane, EC4* Sep 10 Jul 13 139,200 43.3
79/97 Wigmore Street, W1* Oct 10 Jun 13 112,700 34.1
24/25 Britton Street, EC1* Oct 10 Apr 11 51,300 3.7
Walmar House, 288/300 Regent Street, W1* Jun 11 Dec 12 59,800 11.6
100 Bishopsgate, EC3* Jun 11 Oct 14 815,400 273.9
Total of near-term projects 1,566,100 495.0
Pipeline
15 projects 2011+ 1,198,800
Total programme
24 projects, 53% of GPE existing portfolio
2,764,900

† Areas are in sq ft and at 100%.
* For those held in JV, costs are shown as GPE’s share.

Construction and leasing

At our 112,800 sq ft Wells & More, Mortimer Street, W1 building we leased the final part floor in November meaning the office element of the building is fully let. We have recently agreed to lease two of the three retail units and discussions are ongoing with several potential tenants in respect of the last remaining unit. The 46,800 sq ft Woolyard, Bermondsey Street, SE1 scheme is now over 75% let or under offer and we have encouraging levels of interest for the balance.

Recent project starts

Strip out works at Marcol House, 289/295 Regent Street, W1 started in March 2010 and following demolition and rebuilding, we are aiming for practical completion in 2012. The residential scheme at 23/24 Newman Street, W1 has also started this year.

Project preparation

In March 2010, we announced the sale of a 50% interest in The 100 Bishopsgate Partnership to Brookfield Properties Corporation ("BPO") for £43.0 million in cash. This JV holds all of GPE's Bishopsgate properties which form the 100 Bishopsgate development site in the heart of the City of London. Planning Consent for the two acre EC3 site was achieved by GPE in May 2008 for a 40 storey building providing 765,800 sq ft of offices, ancillary retail and a new public library, together with a second building of 49,600 sq ft containing offices and a new Livery Hall for The Worshipful Company of Leathersellers.

The 100 Bishopsgate Partnership intends to prepare the scheme for a potential start date in 2011/12 subject to a variety of partner approvals. BPO will act as Development Manager to the Partnership and has also entered a pre-construction services agreement to act as the main contractor for the development. GPE will continue to act as both Property and Asset Manager.

At Hanover Square, W1 discussions on our masterplan proposals continue with Crossrail and having received a favourable response from a number of stakeholders to our design proposals, we anticipate submitting a planning application later in 2010. Meanwhile, detailed design work is ongoing to prepare schemes at Wigmore Street, W1, Walmar House, Regent Street, W1 and Fetter Lane, EC4 for commencement over the next two years.

Property Awards 2010 Winner - Developer of the Year