Good morning,
Great Portland Estates has swung to an £86.7m half year loss, after values took a 3.4% hit. Chief executive Toby Courtauld said: “Over the past six months, property values in our markets have come under pressure, given the challenging macroeconomic and geopolitical environment.”
The results follow a trend set by Landsec and British Land earlier this week, with both REITs announcing half-year losses despite rising rental incomes. And that seems to be proving the case for the glass-half-empty view of the upcoming recession, writes EG’s editor. Valuations have fallen and will likely continue to fall. And they won’t be alone.
But as values fall, there will be those keen to take advantage of the opportunities. A new survey of 170 institutional investors with around $1tn in real estate assets has found they want to spend an extra $120bn on property over the next few years.
Meanwhile, Grainger’s profit has doubled as values in the residential sector soar. The UK’s largest listed residential landlord has seen rental income rise by 22%, with full-year pretax profit hitting £298.6m, up 96% from last year’s £152m.
Grainger has struck a £62.8m deal for its first build-to-rent scheme in Oxford, forward funding phase two of Mace and Doric Properties’ West Way Square in Botley.
And as inflation hits 11.1%(£), the chancellor Jeremy Hunt(£) is putting the finishing touches to his Autumn Statement(£) – a budget by another name. Join EG throughout the day for more coverage and reaction.
One expected measure will raise rents for 4m social housing tenants by 7% in the next year. Former levelling up secretary Greg Clark suggested a 3% rise, but the Treasury pointed out it could have hiked them by 11.1%.
Meanwhile, Michael Gove has pledged to “name and shame” landlords who let out substandard properties after a two-year-old boy died from untreated mould in his home.
In other news, a £200m Rolls-Royce factory and a 330,000 sq ft film studio are set to rise at Scotch Corner in North Yorkshire after the developer submitted plans to extend the Designer Village site.
Sheffield City Council has approved plans for the UK’s largest open-die forging press. The 136,700 sq ft building will sit next to the Ministry of Defence’s site on Brightside Lane.
And the retailer Joules has collapsed into administration, putting 132 shops at risk of closure.
Yorkshire’s tourist towns of Scarborough and Whitby will be among the first in England to double council tax bills on second homes, if the government gives councils extra powers.
Meanwhile, Airbnb is renewing efforts to get more rooms on its books, after boss Brian Chesky said he was “not satisfied” with the inflated costs to customers.
The founder of Soho House, Nick Jones, is stepping down as chief executive. After building the private members’ club to a 38-location empire, Jones said beating prostate cancer had “changed my perspective”.
More than a third of staff at leading law firms are “actively ignoring” calls to return to the office.
And finally, after sacking thousands of staff, Elon Musk has told those that remain at Twitter that they must commit to a new “extremely hardcore” working culture, or quit. So, what does this mean for the workspaces they once occupied?
