Britain’s biggest property developer warns of rental weakness after Brexit

Land Securities Group, Britain's largest listed property developer, reported a fall in its mid-year net assets per share on Tuesday and warned of further weakness in demand for offices and retail space due to the country's vote to leave the European Union.

Demand for London office spaces was “hesitant” and vacancy rates continued to rise, the company said.

"Uncertainty hangs over many issues and businesses find themselves in uncharted territory. These conditions are having a tangible effect on the commercial property market," chief executive Robert Noel said in a statement.

“Looking ahead, we expect both our market sectors to see a general weakening of net effective rental values . . . but our high quality, well-let portfolio should mean we are relatively insulated,” he said.

The developer of London’s “Walkie Talkie” 20 Fenchurch Street building said its adjusted diluted net assets per share – a measure of the value of a developer’s buildings – fell 1.8 per cent to 1,408 pence per share in the six months to September 30th.

Reuters