Goldman Sachs has issued a bearish “sell” note against British Land, pushing the REIT’s shares to their lowest level in more than four months.
The FTSE 100 REIT’s shares fell 6% yesterday to 375p after analysts at the US bank flagged concerns about its exposure to the City of London, stating that take-up figures show that many occupiers are heading west.
It added that landlords such as British Land will find financing increasingly difficult and costly, as sourcing the funds needed to transact these larger City assets will be harder to come by given the tightening in funding conditions.
The note added that this may lead to a “deterioration in the relative performance of City assets”.
It was not just British Land caught in the wake of this, with Landsec shares losing 3.8% of their value. Elsewhere on the index, Hammerson fell 4.5%, Unite 3.2% and SEGRO 2.4% on an otherwise rallying FTSE.
