Valuations gains boost annual results

Thursday, February 25, 2010

Commercial property market remains cautious, expert suggests.

By Ashley Brunskill

UK valuations gains of 8.9 per cent in the second half of 2009 contributed to one company's annual results, it has suggested.

However, businesses are remaining cautious as the country continues to feel the knock-on effects of the recession.

In the UK, Segro's portfolio decreased in value by 2.1 per cent over the year and in continental Europe it fell by 9.9 per cent.

Segro chief executive Ian Coull said: "Whilst UK commercial property prices have surprised on the upside in the last quarter of the year and the situation in Continental Europe appears to be stabilising, we remain cautious about occupier markets."

He added that this was especially true in Britain where it anticipates the wider economy will lag behind some other countries for the coming year at least.

It has recently been announced the Invista Foundation Property Trust has sealed a multi-million pound business space leasing deal for an office in West Bromwich.

Source: ask-re The Property People LLP