Reduced losses at British Land spark further hopes of UK commercial property recovery
Signs of better return from commercial property, increased investment interest and a slow-down in losses at real estate developers British Land have sparked further hopes of recovery.
British Land claim that total losses now stand at ┬ú275m in the second quarter of 2009, which compared with last year’s Q1 figure of ┬ú572m is a significant reduction.
In addition, claims are emerging that a small number of banks are starting to show increased willingness to lend to commercial property companies.
A report by The Times states that the group’s retail outlets – currently let to stores such as Sainsbury’s and Debenhams – are performing better than office space, which is mostly let to banks. The group’s retail sites are 97.6% occupied, compared with 87.9% for offices.
Speaking to The Times, chief executive of British Land Chris Grigg said:
“We’re cheered by the fact that decline has slowed, but don’t think that we should get ahead of ourselves,” He added: “We are now focusing on looking at ways to add profitably to the portfolio.”
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