Login to UKBP
Commercial Property News
UK prime commercial property value "captured"
Commercial property rates could be set to rise, although those already in the buy-to-let market have gained a certain amount of value.
This is according to Michael Rhydderch, partner at Cushman and Wakefield, who believes the prices currently being paid for UK business property are fair.
When asked to predict how the industry would perform in the near future, Mr Rhydderch explained there may have been large drops in recent times, but these have been coupled with rebounds.
"Although there is some value there, a lot of it has already been captured," he stated.
The expert's comments come as real estate investment trust Derwent London announced an increase in profit before tax.
During the first half of the year, this sum stood at £216.4 million, the figures revealed yesterday (August 25th).
The pre-tax profit levels compare with a £223.3 million loss during the same period last year.
Alongside the gains, the company revealed portfolio revaluation rose by 10.3%, compared with the 9.8% increase in the final six months of 2009.
And net asset value climbed by 17% in the first half of 2010 to stand at 1,365 pence per share, Derwent London noted.
Mr Rhydderch noted: "A lot of people do see the potential for rents to rise, therefore justifying the prices that some people are currently now paying."
Capital values could continue to slowly rise in the short-term, but the expert added he is not sure whether the market has enough momentum for this to continue.
The current situation remains volatile - more so than markets in continental Europe - so there is a tendency for it to "overreact" in both directions, he continued.
Those who were looking to invest in UK commercial property 12 months ago may have been told this country has the best value for money, Mr Rhydderch stated, but now he is unsure whether this is definitely the case.
Posted by Sarah Smith
This is according to Michael Rhydderch, partner at Cushman and Wakefield, who believes the prices currently being paid for UK business property are fair.
When asked to predict how the industry would perform in the near future, Mr Rhydderch explained there may have been large drops in recent times, but these have been coupled with rebounds.
"Although there is some value there, a lot of it has already been captured," he stated.
The expert's comments come as real estate investment trust Derwent London announced an increase in profit before tax.
During the first half of the year, this sum stood at £216.4 million, the figures revealed yesterday (August 25th).
The pre-tax profit levels compare with a £223.3 million loss during the same period last year.
Alongside the gains, the company revealed portfolio revaluation rose by 10.3%, compared with the 9.8% increase in the final six months of 2009.
And net asset value climbed by 17% in the first half of 2010 to stand at 1,365 pence per share, Derwent London noted.
Mr Rhydderch noted: "A lot of people do see the potential for rents to rise, therefore justifying the prices that some people are currently now paying."
Capital values could continue to slowly rise in the short-term, but the expert added he is not sure whether the market has enough momentum for this to continue.
The current situation remains volatile - more so than markets in continental Europe - so there is a tendency for it to "overreact" in both directions, he continued.
Those who were looking to invest in UK commercial property 12 months ago may have been told this country has the best value for money, Mr Rhydderch stated, but now he is unsure whether this is definitely the case.
Posted by Sarah Smith
Thu, 26th Aug 2010