INDUSTRY NEWS

Lower prices generate ‘patchy’ interest in commercial property

Lower prices have generated ‘patchy’ interest in the commercial property market, British Land (BL) has claimed.

It said it expected its underlying earnings per share to be improved from the first quarter, Reuters has reported.

Its chairman Charles Gibson-Smith noted:"In general, prime property valuations in the UK have moved into territory we see as representing long-term fair value."

The firm said it expected to declare its dividend would be seven per cent higher than 12 months ago.

Reuters reported he told the company’s annual general meeting: "Increasing investor interest in UK commercial property at these lower pricing levels is evident, but still patchy."

BL is one of a number of firms who have sold properties to overseas investors – it received £400 million in return for its city office, the Willis building.

A number of funds have been launched to capitalise on falling commercial property values. Overseas investors from Kuwait and Dubai have joined Irish and German firms in looking for an investment among offices in London.

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