Hosking Partners LLP on Great Portland Estates plc
Thesis
Hosking added to Great Portland Estates after valuation pressure created by higher rates and investor concentration in AI shares. The manager believes high-quality London office space benefits from limited new supply. This restricted development pipeline could favor owners of well-located existing commercial properties as demand normalizes. The holding illustrates Hosking's willingness to search outside fashionable sectors for value.
“high-quality corporate office providers in New York (Vornado) and London (Great Portland Estates) appear well placed”
Key risks
- Higher bond yields can continue to pressure real-estate valuations and financing costs.
- London office leasing and tenant demand may remain subdued.
- The valuation gap may persist if investor capital continues to concentrate in AI leaders.