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.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
US existing home sales drop in March; median price increases
German home building permits tumble 18% in February, extending rout
China national who had Singaporeans front plan to buy East Coast houses pleads guilty
Freddie Mac seeks regulatory approval to back home-equity loans
China national fined S$45,000 for having Singaporeans front plan to buy East Coast houses
Condo rents inch up after 7-month decline; volumes recover: SRX, 99.co