British Land bucks property market gloom

Published 13th Aug 2007

British Land, the UK's largest real estate investment trust by assets, is hoping the property market continues to hold. But the problems relating to the housing market are unlikely to be reflected in the company's quarterly results.

Analysts predict that net asset value will rise from 1,688p to 1,725p. Martin Allen, from Morgan Stanley, said: "People will be scrutinising the company's results for signs of a slowdown but at the moment we are unlikely to see one."

British Land focuses on retail and office property, which should help it avoid the well publicised issues hitting the housing market. These are largely a residential phenomenon, Mr Allen said, adding: "Anecdotal evidence shows that some low-cost, low desirability properties in the housing market are seeing a drop in value. Although the cycles are broadly correlated this should not affect the above average growth commercial and retail properties of British Land."

Source: ' Reuters '

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