GPE Tops Out The Courtyard in London's WC1, Targeting Q3 2027 Delivery of 47,000 Sq Ft Managed Workspace

Great Portland Estates has reached structural completion at The Courtyard, 1–3 Alfred Place, Fitzrovia, London WC1E 7EB, marking a significant construction milestone in the company's effort to expand fully managed office space in central London.

GPE announced the topping out on Sept. 16, 2026. The redevelopment is expected to deliver approximately 47,000 sq ft of premium fully managed workspace alongside retail space and upgraded amenities, with completion targeted for Q3 2027.

Acquisition and Redevelopment Scope

GPE acquired the long leasehold interest in the property in May 2024 for £28.6 million, or £462 per sq ft. The transaction was the company's first acquisition following its 2024 rights issue. At the time of acquisition, the building comprised approximately 62,000 sq ft of vacant office and partially let retail space.

Simultaneously with that purchase, GPE sold its short leasehold interest in 95/96 New Bond Street, W1, to CLC for £18.23 million, equivalent to £2,039 per sq ft.

The redevelopment was initially budgeted at approximately £62 million of refurbishment capital expenditure. GPE's investment underwriting projected average fully managed estimated rental value of £216 per sq ft, a development yield of 6.6%, a potential profit on cost of 12.4% and a target ungeared IRR of 11.4%. The project's investment case indicated potential annual fully managed rent of approximately £8.0 million, additional retail income of about £1.0 million and potential net operating income of £4.9 million after operating costs. Those figures represent underwriting targets, not realized performance.

The finished building is planned to include a concierge, an indoor courtyard garden, a rooftop terrace, wellness facilities and reconfigured retail space. The property sits opposite GPE's existing asset at 31/34 Alfred Place and is located near Tottenham Court Road Elizabeth line station.

GPE's Fitzrovia Cluster Strategy

The Courtyard forms part of a broader GPE effort to build concentrated scale in Fitzrovia. The company's cluster in the area also includes 31/34 Alfred Place, The Alfred — formerly Whittington House — 10 South Crescent and The Gable.

The strategy combines development with direct operation of flexible and fully managed offices, giving GPE greater control over amenity provision, service delivery and pricing than a conventional landlord model. The Courtyard's mixed-use design, incorporating both managed workspace and retail, reflects GPE's approach of creating service-oriented assets rather than delivering undifferentiated office floorspace.

Market Context

The redevelopment is proceeding against a backdrop of tightening supply in central London. Central London supply stood at approximately 22.8 million sq ft at the end of Q1 2026, down 10.8% year over year, while vacancy fell to 8.4%, below the five-year average of 10.6%. Q2 2026 data showed supply continuing to decline, with vacancy broadly stable at 8.4%.

JLL reported central London vacancy at 8.6% in Q2 2026, with construction at its lowest level since Q3 2021. Cushman & Wakefield reported central London availability of 10.38 million sq ft under its market definition, with 74% of supply graded Grade A and an overall vacancy rate of 8.41%.

London-wide availability was reported at approximately 21.58 million sq ft, with an overall vacancy rate of 8.0%. Vacancy for new space specifically was reported at only 1.6%. West End core prime rent was reported at approximately £185 per sq ft, following a 15.6% increase in 2025. The constrained development pipeline and polarization between older stock and high-quality, amenity-rich space underpin the rationale for refurbishing an existing central London asset into a fully managed product.

Outlook

With structural completion now achieved, GPE moves into the fit-out phase ahead of the Q3 2027 target delivery. The project remains exposed to construction-cost inflation, financing conditions and changes in tenant demand before completion.