Good morning,
British Land’s share price fell by 6% yesterday after investors took heed of a Goldman Sachs note stating that the time had come to sell. The bearish note raised questions about its City focus, when occupiers appear to be heading west, and the increased difficulties and costs of financing. But BL wasn’t the only property stock to fall on an otherwise uplifted FTSE.
Meanwhile, JP Morgan has doubled down on its concerns that commercial property loans pose the biggest risk to US banks. Its analysts have said the strains showing in the $5.6tn market are “an area of major concern”.
But family office investment managers, with more than £50bn AUM, expect to increase allocations to real estate in the next 12 months. According to new research, 72% say their allocation to real estate will increase in the next 12 months, and 30% expect it to increase dramatically.
The Bank of England is expected to raise interest rates today, following February’s surprise rise in inflation.
And US activist investor Jeff Ubben has promised to toe the line after being appointed to Vistry’s board.
What can the industrylearn from the Casey Report into the Metropolitan Police? asks EG’s editor. We need to hold the mirror up to ourselves and be honest about where we are.
Housing delivery was missing in action in last week’s Budget, writes EVO chief executive Steven Rae. “This simply must be a priority for the government and it is really sad that it doesn’t appear to be the case right now.”
Meanwhile, the latest episode of EG’s politics and property podcast takes a look at the contents of the Spring Budget, digesting hundreds of pages of the Red Book and supporting documents so that you don’t have to. It also has a look at what the politicians get up to in Cannes, why this might finally be the last gasp for Mark Prisk’s baby – the local enterprise partnerships – and how he may have provided the inspiration for The Thick of It.
In other news, up to 40% of shops must be reinvented as anything from go-kart tracks to food markets over the next five years or “wither on the vine”, according to a survey by Revo and LSH.
The English Cities Fund has signed a memorandum of understanding with Wolverhampton to develop sites across the city.
Q Investment Partners and developer Soilbuild have launched a £200m UK purpose-built student accommodation build-to-core platform. The fund will initially be seeded by two prime development opportunities in York and Newcastle, operated by Prestige Student Living.
Developer Ask:Patrizia has received planning for a £48m dual-branded hotel in the heart of Gateshead’s Quayside area.
LondonMetric has sold a trio of industrial estates for £46m.
And a tenant is staging a daily protest against the London property business that bought her entire Welsh village for £1m, after it almost doubled the rent on her home.
