{"id":2613,"date":"2017-01-25T13:43:50","date_gmt":"2017-01-25T13:43:50","guid":{"rendered":"http:\/\/poseidon-gp.com\/property\/?p=2613"},"modified":"2017-01-25T13:43:50","modified_gmt":"2017-01-25T13:43:50","slug":"uk-commercial-property-overly-dependent-on-foreign-capital-analysts-warn","status":"publish","type":"post","link":"https:\/\/poseidon-gp.com\/property\/uk-commercial-property-overly-dependent-on-foreign-capital-analysts-warn\/","title":{"rendered":"UK commercial property ‘overly dependent’ on foreign capital, analysts warn"},"content":{"rendered":"

A<\/span>nalysts at Jefferies have downgraded a number of the UK\u2019s biggest property firms, saying the markets is \u201coverly dependent\u201d on foreign capital.<\/p>\n

In a note issued today, analyst Mike Prew said companies such as Derwent London, Hammerson and Great Portland Estates were at risk from a slowdown in both the office and retail sectors.<\/p>\n

Commercial property values could fall, the note suggested, as foreign investors withdraw and domestic investors fail to fill their place because of higher costs of capital.<\/p>\n

\u201cThe UK commercial real estate market is overly dependent on inflows of foreign capital,\u201d the note warned. \u201cReits (real estate investment trusts)\u00a0are now acclimatised to super liquid markets and superabundant capital but conditions are normalising.\u201d<\/p>\n

It added that the ingredients were in place for a \u201ctoxic shock\u201d of falling rents and rising yields, particularly in London offices, which are likely to be worst hit by any corporate relocation<\/a> as a result of the UK\u2019s exit of the European Union.<\/p>\n

Meanwhile, occupancy in British Land<\/a>\u2019s property slipped in the last quarter, although the company said demand was holding up despite uncertainty around the country\u2019s economic future.<\/p>\n

Reporting the company\u2019s results for the three months to December 31, chief executive Chris Grigg said the firm had had a \u201cpositive quarter\u201d.<\/p>\n

Occupancy for its buildings slipped from 98pc to 97pc, and average lease lengths from nine years to eight, over the course of the quarter.<\/p>\n

But the firm said that leasing discussions with a \u201cwide range of occupiers\u201d were ongoing for its London campuses, which could result in 1.4m sq ft of office space being let.<\/p>\n

British Land is also developing a major building in London\u2019s Liverpool Street and had disposed of a number of properties considered non-core.<\/p>\n

It is also understood to be nearing a deal to sell its stake in the Leadenhall Building, known as the Cheesegrater, for \u00a3500m, in what would be a good barometer of the appetite for investment in the office market in the Square Mile.<\/p>\n

Mr Grigg said that while the business was well-placed, he remained \u201cmindful of potential headwinds\u201d in the coming months.<\/p>\n

Shares in the company were down 3.64pc today to 595.50p.<\/p>\n","protected":false},"excerpt":{"rendered":"

Analysts at Jefferies have downgraded a number of the UK\u2019s biggest property firms, saying the markets is \u201coverly dependent\u201d on foreign capital. In a note issued today, analyst Mike Prew said companies such as Derwent London, Hammerson and Great Portland Estates were at risk from a slowdown in both the office and retail sectors. Commercial […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2613","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9PjAq-G9","_links":{"self":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/2613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/comments?post=2613"}],"version-history":[{"count":0,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/2613\/revisions"}],"wp:attachment":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/media?parent=2613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/categories?post=2613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/tags?post=2613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}