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Commercial landlord British Land has seen more than £ 2 billion wipe the value of its retail parks and offices (PA).

By Holly Williams, PA City Editor

The British commercial landlord Land saw more than £ 2 billion wipe the value of its retail locations and offices as the pandemic and lockdown ravaged its property.

The group, which owns malls like Meadowhall in Sheffield and office buildings in London, recorded At the end of March, its real estate portfolio lost 10.2% in value from £ 11.2 billion to £ 9.1 million.

The company posted annual losses for the third year in a row, with pre-tax losses of 1.05 billion. GBP for the year ended March 31st compared to losses of GBP 1.1bn the previous year.

On the underlying basis, profit decreased by more than a third, a decrease of 34 .3% to £ 306 million as many of its office and retail tenants were unable to pay rent for most of the year.

The retail locations were hit hardest by the pandemic. Values ​​were down 24.7% while they were down 3.8% in all offices.

The group was only able to collect 71% of the rent in their retail store, with many stores taking most of the majority due to coronavirus restrictions Closed for the year.

British Land said it has seen “encouraging” performance across its property since reopening its non-essential retail store on April 12th. Buyer numbers and sales recovered to pre-pandemic levels.

However, it warned that retail markets “will remain tough and we expect rents to continue to fall”.

It added, ” We are seeing signs of retail parks stabilizing and our key case is an additional rent drop of around 5%. The stabilization of shopping centers, which are more severely affected by Covid-19, is likely to take a little longer. ”

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