Real estate market conditions toughest
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Reuters
Oluşturulma Tarihi: Ocak 21, 2009 00:00
LONDON- Land Securities said maximizing income from its multi-billion pound retail and office property portfolio was paramount as it battled some of the toughest real estate market conditions in living memory.
The UK's largest real estate company said on Tuesday it had failed to secure any new office development lettings in the quarter since Sept. 30. in a further sign Britain's increasingly frail economy has started to inflict fresh woes on the UK's commercial real estate market.
"Commercial property has gone through an unprecedented period of re-adjustment," Chief Executive Francis Salway said in a statement. "The speed of valuation decline allied to rising insolvency rates mean the sector is facing one of the most challenging periods in generations," he admitted.
According to benchmark index compiler Investment Property Databank, average commercial property values have slumped a record 27 percent in 2008.
The company did not give an update on the quarterly value of its London office and UK retail property assets but said the grim economic outlook continued to cause concern.
It said its planned 17,700 square meter office letting to News International at St. Thomas More Square near the City of London did not complete as anticipated.Land Securities said retail tenants in administration now represented 4.8 percent of its portfolio annual rental income.
"Commercial property has gone through an unprecedented period of re-adjustment," Chief Executive Francis Salway said in a statement. "The speed of valuation decline allied to rising insolvency rates mean the sector is facing one of the most challenging periods in generations," he admitted.
According to benchmark index compiler Investment Property Databank, average commercial property values have slumped a record 27 percent in 2008.
The company did not give an update on the quarterly value of its London office and UK retail property assets but said the grim economic outlook continued to cause concern.
It said its planned 17,700 square meter office letting to News International at St. Thomas More Square near the City of London did not complete as anticipated.Land Securities said retail tenants in administration now represented 4.8 percent of its portfolio annual rental income.