We continue to focus on our portfolio of low risk, high return properties and to actively manage our buildings to maximise long-term capital returns. Our core areas of operation are the UK, France, Germany and Sweden.
At 31 December 2008, the Group owned 70 properties with a total lettable area of 372,617 sq m (4,010,817 sq ft). 27 properties were in the UK, 24 in France, 17 in Germany, 1 in Sweden and 1 in Luxembourg. We had 356 commercial tenants and 15 residential tenants.
An analysis of contracted rent, book value and yields is set out on the following page.
Contracted
Rent
£m
%
Net
rent
£m
%
Book
Value
£m
%
Yield
on net
rent
%
Yield
when
fully let
%
London South Bank
10.4
17.0%
10.4
17.5%
152.8
19.1%
6.8%
London Mid town
6.7
10.8%
6.7
11.2%
81.3
10.2%
8.2%
London West
4.3
7.0%
3.9
6.5%
49.0
6.1%
7.9%
London West End
0.6
1.0%
0.6
1.0%
9.1
1.1%
6.5%
London South Bank -JVs
0.1
0.3%
0.1
0.3%
2.3
0.3%
6.8%
London North West
0.9
1.4%
0.8
1.4%
9.5
1.2%
9.0%
London South West
1.7
2.8%
1.7
2.9%
17.6
2.2%
9.6%
Outside London
-
-
-
-
1.6
0.2%
-
Total UK
24.7
40.3%
24.2
40.9%
323.2
40.5%
7.5%
7.8%
France Paris
10.2
16.7%
10.0
17.0%
136.6
17.1%
7.3%
France Lyon
4.4
7.1%
4.3
7.3%
54.8
6.9%
7.9%
France Lille
0.7
1.1%
0.6
1.0%
10.3
1.3%
5.8%
France Antibes
0.7
1.1%
0.6
1.1%
8.2
1.0%
7.7%
Total France
16.0
26.0%
15.5
26.3%
209.9
26.3%
7.4%
7.9%
Luxembourg
1.2
2.0%
1.2
2.1%
13.5
1.7%
9.0%
Total Luxembourg
1.2
2.0%
1.2
2.1%
13.5
1.7%
9.0%
9.0%
Germany Munich
6.2
10.1%
6.3
10.4%
85.0
10.6%
7.3%
Germany Hamburg
3.3
5.4%
3.3
5.6%
43.7
5.5%
7.6%
Germany Berlin
3.3
5.4%
3.2
5.4%
44.9
5.6%
7.1%
Germany Bochum
1.2
1.9%
1.2
2.0%
25.3
3.2%
4.7%
Germany Düsseldorf
0.3
0.5%
0.3
0.6%
2.5
0.3%
13.3%
Total Germany
14.3
23.3%
14.2
23.9%
201.4
25.1%
7.1%
7.2%
Sweden Vänersborg
5.1
8.4%
4.1
6.9%
50.8
6.4%
8.1%
Total Sweden
5.1
8.4%
4.1
6.9%
50.8
6.4%
8.1%
8.9%
Group Total
61.3
100.0%
59.2
100.0%
798.8
100.0%
7.4%
7.8%
Conversion rates: Euro/GBP 1.0461 SEK/GBP 11.4474. Yields on receivable rents and potential rents have been calculated on the assumption that book values at 31 December 2008 will increase by refurbishment expenditure of approximately £19.3 million in respect of projects in Germany and £2.7 million in the UK.
RENT ANALYSED BY LENGTH OF LEASE AND LOCATION -The table below shows rental income by category and the future potential income available from new lettings and refurbishments.
Sq. m
(000)
Sq. ft
(000)
Contracted
aggregate
rental
£m
Contracted
but not
Income
producing
£m
Unlet
space
at ERV
£m
Space under
refurbishment
or with
planning consent
£m
We estimate that open market rents are approximately 7.5 per cent lower than current contracted rents receivable, which represents a potential reduction of £4.6 million. An analysis of the net decrease is set out below:
Contracted Rent
£ million
Estimated
Rental
Value
£ million
Reversionary
Element
£ million
UK
24.7
23.5
(1.2)
France and Luxembourg
17.2
16.1
(1.1)
Germany
14.2
13.6
(0.6)
Sweden
5.2
3.5
(1.7)
Total
61.3
56.7
(4.6)
The total potential gross rental income (comprising contracted rentals, and estimated rental value of un-let space) of the portfolio is £65.3 million p.a
