INDUSTRY NEWS

BL’s outlook is “reassuring”

British Land’s recent update contained a positive outlook, something commentators failed to mention, a senior fund manager has said.

Marcus Langlands Pierce from New Star believes its figures need to be taken in context as they reflected historic information.

Mr Pierce explained the market is fully aware of the credit crunch and "the rental income from property is looking increasingly attractive".

"A useful feature of commercial property is that rental payments tend to be quite secure," he explained, adding "particularly if the properties held are high quality with solid tenants on long-term leases."

Despite making positive predictions for business property, he went on to warn that some difficulties remain.

"There are still some potential hurdles for commercial property in the coming weeks not least a number of leveraged funds that are close to breaching loan-to-value covenants."

Recently a number of opportunistic funds have launched which hope to purchase property at lower prices.

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