British Land gets property value boosts
Wednesday 10 February 2010
Commercial property group British Land yesterday hailed a strengthening UK commercial property market when it said that its property values had jumped by 8.2 per cent in the three months to the end of December.
The group, which owns a number of high profile office and retail sites, said that its net asset value, the key measurement of value in the property sector, had risen by 18 per cent on September.
British Land's results reflect a stronger performance in the commercial property market in the last six months, after dramatic falls last year as investors baulked at the sector in the wake of the recession.
"Our third-quarter performance saw a continued recovery with strong valuation growth right across the portfolio," said chief executive Chris Grigg.
News of the improved valuations will buoy taxpayer supported banks like Royal Bank of Scotland and Lloyds Banking Group, which are battling to cut property impairments after a 45 per cent plunge in values between June 2007 and August 2009.
Nonetheless, fears remain that the sector remains fragile. Speaking at the super returns conference in Berlin, Leon Black, the founder of Apollo Management said there would likely be a "bonanza" for distressed debt investors in the sector.
"A lot of the sources of capital [for commercial real estate] have failed," he said. "So if you have capital there are things you will be able to pick off."
A number of analysts are concerned that property values have spiked in recent months, helped by the Government's reflationary measures, such as quantitative easing. The removal of the state backing could lead to weakening once more, they warn.
- 1 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...