The boss of London landlord Great Portland Estates has said the surge of optimism following the Covid vaccine approval, has been “overshadowed” by the return of more stringent lockdown measures.
Toby Courtauld made the comments as GPE, which has a £2.5 billion property portfolio in the City and West End, said it has so far collected 77% of the December quarter rent it was due, including amounts covered by rent deposits
That is ahead of September collection levels, but the firm said “some sectors remain challenged”.
GPE has supported occupiers, particularly in the retail and hospitality sectors, through the pandemic, by agreeing on a case by case basis a move to monthly rents, deferring payments or offering rent holidays.
London’s commercial property landlords had been hoping for more people to return to offices and town after news that Covid-19 vaccines had progressed.
However, the government this month ordered another national lockdown, meaning people are still being encouraged to work from home and many shops stay closed.
GPE’s Courtauld said: “The surge of optimism following the UK approval and roll-out of the Covid-19 vaccines has been overshadowed by the return to more stringent lockdown measures across London.”
Courtauld said: “We expect the near-term trajectory of the pandemic to remain unpredictable, but, as the vaccination programme progresses, we anticipate that confidence will return and London's magnetism as a global cultural and business centre will endure.”
GPE has recently committed to a major office refurbishment at 50 Finsbury Square.
During the quarter to December 31, £2.4 million of new annual rent was signed. Office lettings included to Four Communications.
