July 11 (Reuters) – Commercial property firm British Land (BLND.L) said on Tuesday it still expects strong operational momentum despite macroeconomic uncertainty after rising interest rates wreaked havoc in the heavily indebted sector.
The London-headquartered company, which blends leisure, retail and hospitality facilities at its workspace-focused ‘Campus’ developments, said occupancy at its office spaces stood at 96%, while the retail park segment was at 99%.
Still, a steady recovery from the pandemic fallout on the rental and occupancy fronts failed to lift the murky sentiment in the sector as a surge in property yields due to aggressive rate hikes by the Bank of England has pushed down the value of assets and investment volumes .
Landlords globally are fire-fighting steep declines in property valuation and struggling to tackle soaring borrowing costs, while tightening lending conditions in the wake of the Silicon Valley Bank collapse have made life more difficult for property firms.
Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sherry Jacob-Phillips
Our Standards: The Thomson Reuters Trust Principles.