AGM Statement

Great Portland Estates PLC
09 July 2004


9 July 2004

AGM Statement

Richard Peskin, Chairman of Great Portland Estates plc, will make the following
comments at today's AGM, to be held at Le Meridien, 21 Piccadilly, London.

'Over the past two years, we have worked hard to position Great Portland Estates
for a recovery in our core markets. Almost £280 million of properties have been
sold, the quality of the core portfolio has been improved through our
reinvigorated asset management, we have started a new development programme and
refinanced our debt book reducing our interest cost to 6.5%.

We continue to make good progress on our development programme. Since the year
end we have acquired a site at Shand Street, SE1 and two adjoining investment
properties. These purchases provide an opportunity to develop at least 120,000
sq ft of new office space opposite the new More London and GLA developments, and
bring our current programme to seven major schemes with an estimated end value
approaching £270 million.

The Group's central London void rate of 1.5% is lower today than it was at the
year end and compares favourably with the central London market rate as a whole
of approximately 11%. Since September 2002, more than 50% of the Group's current
rent roll has been restructured, and we are under way with a significant
programme of asset improvement across the portfolio. With an average rent of
only £32 per square foot, the Group's portfolio has plenty of inherent growth
capacity.

We remain encouraged by the improvement to the letting market in central London.
Initial take-up figures for the second quarter of this year show an increase
over the first quarter, continuing the upward trend we identified this time last
year. In the West End, where 75% of our portfolio is located, vacancy rates are
falling and we are seeing some limited evidence of rental growth for prime, new
West End space. With only 1.8 million sq ft of new Grade A office space
scheduled to come on stream by December 2006, we can expect rental growth to
return across the West End during 2005. Six of our seven development schemes are
located in the West End and will benefit from these market improvements.

The supply of space to let in the City has peaked and we expect to see the
vacancy rate reduce during this year. However, although the development pipeline
is limited to only 1.5 million sq ft, there is more than 7 million sq ft of
Grade A space available to let in the City, and we expect rental growth to be
delayed until beyond 2006. We have 24% of our portfolio in the City with an
undemanding average rent of £33 per sq ft.

Whilst our recent acquisitions in Sackville Street and Tooley Street demonstrate
that we are finding opportunities for value creation, the sheer quantity of
capital, both private and institutional, looking to be invested continues to
push yields to historically low levels. We will continue our disciplined
approach to new investment, seeking out only those opportunities with the
potential for a higher return on capital invested. That is why we are proposing
a 50p per share return of cash to shareholders.

If this is approved, the Group's balance sheet will be more efficiently geared
for this stage in the property cycle, without constricting our ability to
transact new opportunities and deliver our development programme.

The hard work and commitment of everyone at Great Portland has helped to
position the Group favourably for the next property cycle in London and we are
already beginning to see the fruit of this labour. The company is in good shape
with a strong balance sheet, a development programme growing both in size and
prospects, a fully let portfolio and occupational markets showing real signs of
improvement. We are well placed to benefit from the recovery and we look forward
to the future with confidence.'


Contacts:

Great Portland Estates plc                        020 7580 3040
Toby Courtauld, Chief Executive


Finsbury Group                                    020 7251 3801
Edward Orlebar/Gordon Simpson





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