FTSE 100-listed commercial property giant British Land said this morning it expects investors and occupiers to take a cautious approach to property in the aftermath of the Brexit vote.
Since the EU referendum vote, British Land has secured the sale of Debenhams' Oxford Street store for £400m and the company has made 17 long-term retail leases totaling 58,000 sq ft, for which terms were agreed before the vote, it said this morning.
The group has also filled the Leadenhall building; Kames Capital and MS Amlin filled the space, completing on 20,000 sq ft.
18 July 2016 @ 8:30amBritish Land Co (BLND)
Why it's interesting
British Land suffered in the post-referendum sell-off along with other commercial property companies due to concerns over the future of London as a financial capital.
Investors scrambled to withdraw their cash from various commercial property funds as well, resulting in many funds suspending trading. Some introduced a dilution levy to deter people from taking out more money.
British Land's comments today reflect the mood of many leading the property industry, who feel the fundamentals of the sector are strong. However, nervousness around London's future is likely to cast a long shadow over both residential and commercial property, with many experts predicting house prices will be hit.
What British Land said
Chief executive Chris Grigg said:
"We had a good quarter of activity in the lead up to the referendum. In the short period since, we are pleased to have exchanged on the sale of Debenhams, Oxford Street and completed further lettings across the office and retail portfolios.
"It is too early to properly assess the impact of the referendum results on the markets in which we operate but we do expect some occupiers and investors to take a more cautious approach.
"British Land has entered this period of post-referendum uncertainty in a robust position."