Not A Doubt

Friday, November 6th, 2009

British Land Gives Hope to Office Space Markets in West End

The news of British Land buying an office space development in the West End has come as a lifesaver for the UK commercial property market that is striving for recovery from the market crisis following the recession.

Other than being the first purchase by British Land after the onset of recession in 2007, the £40.35m deal is also significant on account of being the largest purchase in the Central London investment market in last one year.

The purchase has already resulted in a huge increase in value of British Land shares from 19.1p to 492p.

Bank of America, who is the first tenant of the building, has let the building for three years until July 2012. However, the rent of £47 per square foot is going to be recovered by the bank who through subletting of the building will rent desk space to nine separate tenants.

This Victoria Street purchase has been declared a fine investment for the company by Tim Roberts, head of offices at British Land, as it not only increases the group’s ownership in the West End but also balances their office portfolio. T

hough the market witnessed a rise of 1.1pc in property values last month, there are high chances of the market falling back to the earlier position in light of the poor office space demand in the area.

However, according to BNP Paribas Real Estate company, the financial sector is in dire need for office space despite the banking crisis. It is yet to be seen whether the positive trends in the office space market turns out to be a lasting trend or just a matter of chance.

This entry was posted on Friday, November 6th, 2009 at 8:20 am and is filed under Better Business, Corporate Evangelism, Real Estate Infos. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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