Meadowhall value drops as credit crunch kicks in
The value of British Land's property portfolio, which includes the Meadowhall Centre in Sheffield, declined by ten per cent over the year to the end of March - falling by around £1.6 billion on a like-for-like basis.
Meadowhall's value dropped by more than £150m, the firm said.
Including a £3.2 billion sales programme over the course of the year, the company's overall portfolio fell from £16.9 billion to £13.4 billion. Profit before taxation fell from £1.4 billion last year to a £1.9 billion loss.
Chief executive Stephen Hester said: "What is happening in real estate markets represents collateral damage from re-pricing of risk, liquidity fears and economic pressures more broadly.
"As such, the answer to when and at what level prices settle cannot be accurately given until the broader picture clears.
"We believe that property pricing is now generally much more supportable than at the market peaks when we were large scale sellers and the worst of yield correction 'should' be behind us."
Retail was the hardest-hit sector of the company's portfolio, with warehouse values down 13.9% and department stores 13.6%. City offices, where fears of oversupply and demand weakness have been at their most acute, where priced down 8.2% or 3.2% over Q1 2008.
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Last Updated:
20 May 2008 9:44 AM
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Source:
n/a
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Location:
Yorkshire
