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UPDATE 1-Gt. Portland property portfolio sheds 9.5 pct

Published 11/13/2008, 02:33 AM
Updated 11/13/2008, 02:36 AM
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* Great Portland portfolio value slumps 9.5 percent in H1

* Adjusted NAV tumbles 15.3 percent

* Rental voids remain below 2007 level

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LONDON, Nov 13 (Reuters) - London property investor Great Portland Estates blamed the scarcity of debt for a 9.5 percent fall in the value of its property portfolio to 1.42 billion pounds ($2.20 billion) on Thursday.

In interim figures to Sept. 30, Great Portland said Britain's sluggish economy had added to the challenges faced by UK property investors, who were already battling with a "radical reduction in property investment market turnover" and continued decline in the value of their assets.

"It is now clear that the paralysis in global credit markets and the unprecedented events of the past few months have helped to push the British economy into recessionary territory," Chief Executive Toby Courtauld said in a statement.

"For our markets, the consequences will be lower demand for space, higher vacancy rates and falling rental values."

Great Portland, which specialises in development and investment in London's West End business district, posted a 15.3 percent fall in its adjusted net assets per share to 493 pence.

Courtauld said the firm had planned well ahead for a UK property slowdown, both by completing and letting new developments ahead of schedule and selling non-core assets.

Despite fears over the strength of occupiers to survive recession, Great Portland reported a void level of 3.2 percent compared with 4.6 percent for the same period last year.

The company sold 92.7 million pounds of property during its fiscal first half, reducing net debt to 366 million pounds and boosting adjusted pretax profits by 39.4 percent to 14.5 million pounds. Total dividend per share rose by 2.6 percent to 4 pence.

(Reporting by Sinead Cruise; Editing by Mike Nesbit)

(See www.reutersrealestate.com for the global service for real estate professionals from Reuters)

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