Strengthening market sees British Land property values increase for Q4 2009
British Land recently reported property values increasing by 8.2% in the final quarter of 2009, as the UK commercial property market shows more signs of strengthening. British Land went on to say that its net asset value had risen by 18% on September.
The reported results show that the commercial property market has picked up in the last six months. This comes after the falls last year when investors avoided the sector due to the recession.
“Our third-quarter performance saw a continued recovery with strong valuation growth right across the portfolio,” stated British Land chief executive Chris Grigg.
The reported rise in values of property in the commercial sector will be good news for the banks that are supported by the taxpayer, as they continue to fight to cut property devaluation following the 45% drop in values between the end of Q2 2007 and August last year.
While the valuation increase is good news, the commercial property sector is still seen as being quite delicate. At the Super Return conference in Berlin, Leon Black the founder of Apollo Management said that there could be many distress sales on the horizon.
“I think a lot of the traditional holders of this real estate are going to be forced to sell as things are marked down,” he said. He then went on to state that those with capital would be able to take advantage and that commercial real estate would be a ‘bonanza’.
Tags: Commercial investment, commercial property market news
