Feb. 2 (Bloomberg) -- Great Portland Estates Plc, a property developer focused on London’s West End district, said its buildings appreciated by 2.6 percent excluding acquisitions and disposals in the fourth quarter as overseas buyers fueled demand for London properties.
The value of Great Portland’s real estate was 1.9 billion pounds ($3 billion) at the end of last year, a gain of 45.9 million pounds from Sept. 30, the company said today in a statement. Net asset value rose 2.1 percent to 386 pence a share.
Overseas buyers with 40 billion pounds of cash are targeting London for investment, broker Knight Frank LLP said yesterday. A lack of debt finance is restricting new developments and property owners will benefit as a result when economic growth returns, Great Portland said.
“Investor demand, particularly from overseas, remains strong whilst tenant take-up has increased over the quarter to the long run average level,” Chief Executive Officer Toby Courtauld said in the statement.
Great Portland’s developments rose 9.1 percent in value during the quarter, the company said in the statement, after they were revalued because of rental growth. They include Hanover Square, a development of shops and offices in Mayfair.
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