Cheesegrater owner British Land bolts on billions from spiralling City rent
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Version 0 of 1. Cheesegrater owner British Land is reaping the benefits from record commercial property rent in the City of London. Quarterly results show a double-digit surge in the value of British Land’s property portfolio to £13.6 billion. A buoyant year for lettings - 2.4 million sq ft across its offices and shopping centres - has left its estate virtually full up, while rents are up by more than 10% in both the City and West End markets, the firm said. The Cheesegrater is undergoing repairs after three of the giant steel bolts in the framework fractured, but the high-profile problems failed to deter tenants. Shipping broker Affinity Shipping has taken the highest available floor, paying over £90 a square foot. The tower now has only six floors vacant. "Rental growth has continued to improve in London and that feels like a decent trend for a while," chief executive Chris Grigg said. The 12% rise in its portfolio was driven by the rental growth and its development pipeline, the company said. Net asset value per share was up 20.5% and pre-tax profits for the year to March - stripping out valuation gains - rose 5% to £313 million. Morgan Stanley analyst Bart Gysens said: "The portfolio is almost fully occupied, which suggests rents could continue surprising on the upside." |