At Rathbone Square the main construction contract has been agreed with Lend Lease and construction work is fully underway and progressing well.
The successful sales programme in respect of the 142 private residential units continues and GPE expects to commence the pre-letting campaign for the 214,900 sq ft of office space in summer 2015. The project is expected to complete in June 2017 and, based on current market assumptions, is expected to deliver GPE a pre-tax profit on cost of 19.2%. This is a healthy increase on the 15.7% expected on commitment to the scheme in spring 2014, as the residential sales success and increased market rental levels have more than outweighed an increase in construction costs and programme length. The eventual profit on cost to GPE will be influenced by a variety of factors, including the overage arrangements agreed with the Royal Mail Group on purchase of the site in September 2011.
Source: GPE Annual Results 2015