A divergence between public and private market values has been a feature of UK property this year, with discounts to net asset value near five-year highs while assets are being sold at record prices.
An example of this was Landsec’s sale of its stake in the Walkie Talkie skyscraper at a price 13% above its book value but at a time when Landsec was trading at a sharp discount to the value of its assets.
Some analysts are concerned that the divergence could echo the situation in 2008 and 2009 and mean a potential drop in the market.
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