The spectacular rise in West End office rents over the past three months has sent valuers looking for their slide rules; clearly a reassessment of the whole West End scene is necessary. A glimpse of what is about to unfold was seen in the valuations by Healey & Baker and Jones Lang Wootton of the properties secured against the Peachey £30m debenture stock.
Properties valued last June have risen by 20% to 30% and properties acquired by Peachey from Legal & General a year ago have increased in value by 40% to 50%. There are many property companies with vast West End holdings and these are set to show major asset growth.
On Thursday May 7 the sector had a mixed appearance and the session ended with a number of losses. Takeover candidate Warnford slipped 25p to 875p and Hanover Druce fell 15p to 305p, while among the leaders Land Securities firmed a penny to 444p, but MEPC eased a penny to 423p. LET slipped 20p to 728p and Rosehaugh lost 10p to 860p, but British Land put on 4 1/2p to 225p and Capital & Counties added 3p to 318p. Markheath was in demand and rose 8p to 138p, while Tops Estates gained 10p to 550p. WatesCity of London rose 6p to 196p.
Mountleigh eased a penny to 260p, but Connells Estate Agents rose 6p to 351p and Egerton Trust put on 5p to 179p. However, Mountview lost 10p to 860p. Among the overseas companies, International Income Property rose 18p to 898p.
The sector bounced back to life on Friday May 8, with most of the leaders surging ahead. Land Securities, where Lord Samuel is believed to be unwell, gained 9 1/2p to 453 1/2p, while MEPC gained 9p to 432p. London & Edinburgh Trust advanced 17p to 745p and Imry International added 20p to 550p. Great Portland was in demand, with the shares rising 5 1/2p to 274p, and Greycoat gained 7p to 346p.
Asda rose 10p to 465p and Bradford gained 10p to 560p. Brixton Estate moved up 5 1/2p to 230 1/2p, while Hardanger soared 82p to 605p on speculative demand. Peachey Property gained 45p to 425p on bid speculation following the sale by British Land of its 7.26% stake. Another notable gain was Rosehaugh, 45p up at 905p. Centrovincial added 13p to 343p but Mountleigh slipped 7p to 253p.
There were some notable gains on Monday when highflyer Helical Bar gained £1/8 to £12 5/8 in investor demand. Allied London gained 8 3/4p to 116p on speculative investment.
Leading stocks were firm with Land Securities 9 1/2p better at 463p, while MEPC, which is still trailing behind the sector’s leader, added 4p to 436p. Lynton gained 8p to 299p and Rosehaugh gained 20p to 925p.
British Land firmed 3p to 233 1/2p, while Peachey lost 8p to 417p. Capital & Counties rose 13p to 333p and Chesterfield, where there is continuing bid speculation, rose 35p to 620p. Mountleigh gained 12p to 265p and Tops Estates rose 30p to 570p. Warnford added 25p to 900p.
The sector was subdued on Tuesday with few notable movements. Land Securities lost 11p to 452p and MEPC gave up 7p to 427p. London & Edinburgh slipped 10p to 733p, while Rosehaugh lost 12p to 913p. British Land fell 6 1/2p to 227p, but Parkdale Holdings managed a 3p gain to 117p.
The property sector was in sparkling form on Wednesday, with the speculative issues adding to the feeling of well being created by Land Securities’ surprisingly good results. Land Securities added 17p to 469p while Hammerson A put on 24p to 560p. Percy Bilton rose a similar amount to 356p and MEPC put on 19p to 448p.
