Property development company British Land is the latest of the large property investors to consider its strategy for the anticipated recovery in the commercial property market.
Last year, BL recorded losses of over £3 billion, reducing the value of its portfolio by almost 30 percent. Shares have fallen to below 400p at the time of writing, compared to more than four times that early in 2007.
The company is now looking for opportunities to benefit from future recovery, whenever it occurs.
To a certain extent British Land is insulated from the further expected falls in tenancy rates. The investment group owns the Broadgate Estate in London, a 30-acre development of office space, retail outlets and leisure accommodation.
Occupancy rates for their commercial properties are running at 96 percent, with an average lease length of 13 years and only 6 percent due for renewal in the next 3 years.Share: