Landlord GPE hit as tenants desert market

London landlord Great Portland Estates (GPE) today said demand for its shops and offices has fallen 66% since May as would-be tenants desert the market.

The warning came as GPE posted first-half losses of £146.2 million, compared with profits of £130.7 million a year ago. Its estate has slumped 9.5% or £149.1 million in value in the last six months to £1.42 billion.

Chief executive Toby Courtauld said: "The paralysis in global credit markets and unprecedented events of the past few months have pushed the British economy into recession. The consequences will be lower demand for space, higher vacancy rates and falling rental values."