MORNING NEWS: LondonMetric doubles rents as Helical preps to build

Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of industry-relevant headlines from the nationals, all perfectly curated to set you up for the day ahead. Andrew Jones’ LondonMetric has more than doubled its income as M&A activity pays off and its “all-weather” portfolio sails through stormy weather. Net rental income reached £193.1m in the six-month period, up by 154% on the £76m achieved in the same period in 2023. Like-for-like income growth was up by 1.7%. Chief executive Jones said: “Following the transformational LXi deal, we have further cemented our position as the UK’s leading triple net real estate income investor. “Our all-weather portfolio with guaranteed rent growth, greater scale and a well-positioned balance sheet underpins our earnings growth and our ability to deliver a tenth year of dividend progression and maintain our path to dividend aristocracy.” Equally upbeat this morning was Helical boss Matthew Bonning-Snook, who said the company had all the resources it needed to push ahead with its development pipeline in the capital, including not only offices but also projects that will take the business into “alternative uses” such as the student accommodation market. In half-year results to 30 September, the company was back in the black with a £4.7m profit, turning around a £93.1m loss from a year ago.  Not so jolly is Welput, which could see its long-running and highly opposed plans to build a 43-storey tower close to one of the country’s oldest synagogues called in. Secretary of state Angela Rayner has issued a directive to the City of London Corporation not to grant planning for the scheme without her specific authorisation. The plans are set to go to planning committee next month, and while they can still be considered – or refused – permission cannot be granted. Elsewhere, the British Property Federation has called on the government to make sure the real estate sector’s critical role in facilitating economic growth is recognised in its industrial strategy. Consultation on the Invest 2035 document closed on Sunday evening. In its response, the BPF said growth could only be delivered through an integrated approach stimulating investment into the UK property sector and linking planning reform and other major growth strategies, including housing and infrastructure.  Chief executive Melanie Leech said: “The property sector underpins every part of our lives and businesses cannot grow and drive a strong economy unless they have fit-for-purpose modern facilities and the workers they rely on can find homes for their families.  “There are billions of pounds potentially available to invest in UK property of all types – from state-of-the-art research facilities to high-value manufacturing to new homes – and we call on the government to work with us to unlock this investment to deliver Invest 2035 and thriving communities across the country.” The impact of changes to the workings of the property sector can be felt in Scotland where agent Rettie reckons that the introduction of a rent freeze in 2022 and the prospect of rent controls has kept investment away.  John Boyle, director of strategy and research at Rettie, said: “Strong underlying market fundamentals have kept Scotland’s BTR sector alive, but there has been very slow progress over the last year and no new investment in the sector for the best part of two years. While a number of schemes have achieved completion over the last 12 months, to date 2024 has seen the fewest number of new BTR units entering the pipeline since 2015.” All of the news from EG, plus a selection of headlines from the nationals: ‘All-weather’ portfolio performs for LondonMetricTime to build, says HelicalEuropean high street rents post strong reboundRayner steps in on City tower rowBTR underperforms all property as values rise just 0.4%Sugar ‘aggressively endeavouring’ to boost portfolio Diamond deal for French investorBruntwood SciTech reveals Birmingham innovation hub revampDWS buys 207-home Dublin resi scheme‘They’ve outgrown the lounge’: Workspace boss on supporting small firmsScottish BTR market stalls due to rent controlsCall for occupiers to help Oxford Airport mid-tech hub take offUnite embarks on £75m refurbishment strategyNational deals round-upLeeds’ Lawnswood Business Park scores hat-trick of lettingsEdmond de Rothschild REIM secures £13.7m loan for Edinburgh BTR schemeReal estate’s critical role should be key in industrial strategy, says BPFBakery chain at centre of gentrification row sees £500m sale (£)Rachel Reeves says there will be no more tax increases on UK business (£)