Interim Management Statement

Great Portland Estates PLC
23 January 2008



Great Portland sees continued rental growth in fiscal Q3

In today's Interim Management Statement, the Directors of Great Portland Estates
plc ('GPE') announce an update on trading, as well as the quarterly valuation of
the Group's properties as at 31 December 2007. A summary of the Group's recent 
valuations, rental value and NAV performance is set out in appendix 1 and 
detailed valuation statistics can be found in the tables attached at appendix 
2 and 3.

To view the accompanying appendices please cut and paste the below link into 
your web browser:

http://www.rns-pdf.londonstockexchange.com/rns/3355m_-2008-1-22.pdf


Highlights of the quarter:

• Portfolio valuation down 4.1% due to 36 basis points outward market yield 
  shift
• NAV per share of 617p down 6.5% since September, up 12.2% since December 2006
• NNNAV per share of 619p down 6.6% since September, up 16.8% since 
  December 2006
• Rental value growth of 2.6%, 3.7% in West End offices. Portfolio 45%
  reversionary
• New leases generating £2.3 million p.a. signed since September with £1.6
  million p.a. under offer
• Void rate down to 3.6% from 4.6% in September. More than half of void space 
  under offer
• Practical completion achieved at the pre-let 60 Great Portland Street 
  development
• 180 Great Portland Street office development substantially let, with final 
  space under offer at £67.50 per sq ft, up from November's record of £65 per 
  sq ft
• Planning approval granted for 135,000 sq ft Wigmore Street redevelopment
• Property sales totalling £16.1 million in quarter at a 24% premium, net of 
  costs, to September 2007 valuation

Toby Courtauld, Chief Executive of GPE said,

'We highlighted at our interim results in November that rising yields would have
a negative impact on property valuations. This has proved to be the case as
investors reappraised risk and sentiment deteriorated, particularly in the last
few months of 2007. Central London's occupational markets, by comparison, remain
well balanced with solid demand for the limited quantity of available office
space. In the West End where 81% of our portfolio is located, vacancy rates
remain at, or near, record lows.

Against this backdrop, the Group has made good operational progress since the
half year. Numerous new leases have been signed, helping to push rental values
up by 2.6% over the quarter and bringing our void rate down to 3.6%. More than
half of our void space is currently under offer at rents ahead of their December
2007 rental values.

Looking forward, investment market turbulence is forecast to continue,
particularly for poorly located, secondary properties and rental growth rates
are expected to moderate. However, we remain confident that our blend of quality
assets, in under-supplied core locations, with a low average office rent of
£33.30 per sq ft and our management focus on asset repositioning will enable us
to continue to outperform against our central London benchmarks'.

Valuation

The valuation of the Group's properties as at 31 December 2007 was £1,699.2
million including our share of joint venture assets, a fall of £72.9 million or
4.1% since 30 September 2007. The difficulties in the credit markets and
consequent slowdown in property investment transactions have caused yields to
rise and asset values to decline across the UK. The wholly owned portfolio true
equivalent yield increased by 36 basis points over the quarter and now stands at
5.3% (5.4% for joint venture properties).

Rental values grew by 2.6% during the quarter, building on the 9.0% recorded for
the six months to 30 September 2007. West End office rental values were 3.7%
higher whilst City and Southwark rental values rose by 1.8%. The Group's average
office rental value remains low at approximately £47.10 per sq ft, some £13.80
per sq ft higher than the average office rent passing, whilst the portfolio was
45% reversionary at the quarter end.

With 81% of our assets located in the under-supplied core of the West End and
the portfolio's low average office rent of £33.30 per sq ft, we remain confident
that our asset repositioning activities will enable us to continue to generate
relative valuation outperformance. The net impact of the movement in yields and
rental values on the portfolio valuation are set out in appendix 3.

Estimated NAV per share and financing

The main movement in assets for the quarter was the reduction in portfolio
valuation of £72.9 million due to adverse market yield expansion. NAV per share
was also impacted by the interim dividend of £6.8 million and the purchase of
shares to satisfy future LTIP requirements of £0.8 million. The sale of two
properties in Whitfield Street, W1 at a profit to their September valuation
lifted NAV by £3.1million. As set out in the table below the estimated NAV per
share fell 6.5% from 660p in September to 617p at December 2007.

---------------------------------------------------------------------------
Pro Forma Estimated Balance Sheet (unaudited)

                                             £m        Pence     Percentage 
Adj NAV                                            per share       movement 
At 30 September 2007                    1,195.0          660   

Valuation reduction                       (72.9)         (41)
Sale of Totfield/Whitfield                  3.1            2    
Purchase of shares in LTIP trust           (0.8)           -
Interim dividend                           (6.8)          (4)
                                        ---------------------
At 31 December 2007                     1,117.6          617          -6.5%

REIT NNNAV
Market to market of debt                    4.5            2
At 31 December 2007                     1,122.1          619          -6.6%
                                        =====================
At 30 September 2007                    1,199.9          663 
                                        =====================
---------------------------------------------------------------------------
Note: The pro forma balance sheet does not include retained earnings for the
quarter

The mark to market of debt of £4.5 million or 2p per share generated a NNNAV per
share of 619p at December, a fall of 6.6% from September.

Net debt at December 2007 was £531.0 million, a reduction of £86.0 million from
30 September 2007, primarily due to the completion of the sale of the Met
Building, offset by capital expenditure on developments of £16.3 million and
investment in joint ventures. Gearing of 48% at December was down from 52% as at
30 September 2007. At December, the Group had cash and undrawn, committed credit
facilities of £186 million.

Investment activity

In December, two buildings located in Whitfield Street, W1 were sold for £16.1
million generating a profit of £3.1m or 24% to their September valuation, net of
transaction costs.

Within the Great Capital Partnership ('GCP'), during December, we purchased a
29,500 sq ft holding fronting Broadwick Street, W1 for £18.4 million (GPE share
£9.2 million). The acquisition augments GCP's existing holdings in this prime
Soho street, opening up a number of repositioning opportunities.

Letting and development

Since September, we have signed new leases and relettings worth £2.3 million
p.a., representing 4% of Group rent roll. Across our business demand from
potential tenants for good quality, well located office and retail space remains
solid. Our major refurbishment at 180 Great Portland Street, W1 is almost fully
let with the final half floor under offer at £67.50 psf, a record for this
segment of the West End. At 60 Great Portland Street, W1 the pre-let development
has reached practical completion and the lease to The Engine Group is expected
to complete imminently.

Resolution to grant planning consent for the 135,000 sq ft redevelopment of our
Wigmore Street, W1 holdings was gained in December whilst positive discussions
are continuing with major stakeholders for a possible redevelopment of our 1.3
acre Hanover Square, W1 holding. We aim to submit a planning application during
2008. At Blackfriars Road, SE1, demolition is progressing to facilitate a
development in due course and all our other 11 schemes within the near term
development programme are progressing well.

Contacts:

Toby Courtauld     Chief Executive    Great Portland Estates plc   020 7647 3042
Timon Drakesmith   Finance Director   Great Portland Estates plc   020 7647 3034

Finsbury
James Murgatroyd                                                   020 7251 3801
Gordon Simpson                                                     020 7251 3801

Forward Looking Statements

This document may contain certain 'forward-looking statements'. By their nature,
forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances. Actual outcomes and results may differ
materially from any outcomes of results expressed or implied by such
forward-looking statements.

Any forward-looking statements made by or on behalf of GPE speak only as of the
date they are made and no representation or warranty is given in relation to
them, including as to their completeness or accuracy or the basis on which they
were prepared. GPE does not undertake to update forward-looking statements to
reflect any changes in GPE's expectations with regard thereto or any changes in
events, conditions or circumstances on which any such statement is based.

Information contained in this presentation relating to GPE or its share price,
or the yield on its shares, should not be relied upon as an indicator of future
performance.




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