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UK property firm Great Portland lowers rental view due to Brexit
[LONDON]London property and investment company Great Portland Estates warned on Thursday that rental values could fall by as much as five percent for the year to next March due to uncertainty sparked by Britain's plans to leave the European Union.
Great Portland, whose portfolio is dominated by office property but also includes retail and some residential property, said it expected annual rental value growth of between negative 5 per cent and 0 per cent.
That was down from an earlier forecast for growth of around 5 per cent. "We expect lower forecast GDP and employment growth, combined with some businesses deferring investment decisions, to have an adverse impact on our occupational markets," the company said in a statement.
It reported a 4 per cent fall in EPRA net assets per share - a measure of the value of its properties - to 813 pence per share for the six months to Sept 30.
Britain's June 23 vote to leave the European Union has jolted its £900 billion (S$1.58 trillion) commercial property market, prompting the suspension at one point of commercial property funds worth more than £18 billion.