Member Article

British Land enjoys profit surge thanks to London property market

British Land is benefitting from record commercial property rent in the capital, as it sees pre-tax profits rise 5% to £313m.

The Cheesegrater owner reported a double-digit surge in the value of its property portfolio to £13.6bn in its quarterly results released today.

A strong year for lettings has left British Land’s estate virtually fully-occupied, with rents in the city up more than 10%.

Chief executive Chris Grigg said: “Rental growth has continued to improve in London and that feels like a decent trend for a while,”

Along with rental growth, the group attributes the 12% growth in its portfolio to its strong development pipeline.

Gigg continued: “We are announcing a strong set of results today with the Group continuing to outperform on a range of measures. This reflects the strategic decisions we have taken over the last five years to re-position the business, alongside the strength of our day to day asset management activities.

“I am particularly pleased with our exceptional leasing activity over the year, which is the clearest indication we are creating environments where people want to work, shop and live. As we look ahead, our results give us confidence we are well positioned for changing trends in the real estate sector: we have a modern portfolio focused on the right locations; a strong balance sheet with a low cost of debt; and an exciting development programme.”

This was posted in Bdaily's Members' News section by Ellen Forster .