UK real es­tate gi­ants fall into red on Brexit

Kuwait Times - - BUSINESS -

LON­DON: Real es­tate gi­ants Bri­tish Land and Land Se­cu­ri­ties sank into the red in the first half of 2016, partly hit by slid­ing com­mer­cial prop­erty prices after the shock Brexit vote. Bri­tish Land said yes­ter­day that it suf­fered a pre-tax loss of £205 mil­lion ($255 mil­lion, 238 mil­lion eu­ros) in the six months to Septem­ber after a year-ear­lier profit of £823 mil­lion. The firm, one of Europe’s largest pub­licly listed real es­tate com­pa­nies, said the loss was “pri­mar­ily due to a neg­a­tive prop­erty val­u­a­tion move­ment” in the wake of Bri­tain’s EU exit ref­er­en­dum on June 23. “Un­cer­tainty caused by the UK’s vote to leave the European Union has re­sulted in the cen­tral Lon­don of­fice mar­ket reg­is­ter­ing its first cap­i­tal value de­clines since 2009 fol­low­ing sev­eral years of strong growth in both rents and val­ues,” it said. “We rec­og­nize the im­pact that this un­cer­tainty is hav­ing on busi­nesses in Lon­don, and their abil­ity to make plans for the fu­ture, but we be­lieve that Lon­don will en­dure as a global cen­tre.”

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