Good morning,
The unfolding recession is beginning to make itself felt, with contraction and cuts the watchwords of the day.
Developers of London office schemes are now as pessimistic about the leasing market and construction pipelines as they were during the depths of the Covid-19 pandemic. Deloitte’s latest Crane Survey forecasts that, after a “year of catch-up” in 2023, construction completions will dwindle.
Meanwhile, England’s stock of office space is falling at the fastest rate for 20 years, with 2% of the total market lost in the year to March.
And economic output has slumped to its lowest level since May 2020, according to analysis from Lloyds Bank.
No wonder Landsec is pleased with its £809m sale of 21 Moorfields. Some had said the price was low, but boss Mark Allan said if the deal had been delayed by as much as a week, it would have been killed by the mini-Budget.
Sirius is buoyant, though, having boosted revenue by nearly 50% in H1. Profit remains unchanged, though.
The chancellor has said he will revive the government’s industrial strategy. Better late than never, eh?
Incidentally, you can hear more about the budget-not-budget’s impact on real estate in this week’s EG Like Sunday Morning.
In another sign of the worsening state of the economy, hospitality insolvencies have soared by 59%.
Meanwhile, Sapphire, the owner of Scotland’s largest shopping centre, has entered administration.
Iceland has given the cold shoulder to suitors, saying it has no plans to sell.
But square-burger seller Wendy’s is feeling positive, with plans to open as many as 400 restaurants across the UK.
Tilstone Partners, Warehouse REIT’s external investment adviser, has appointed a new asset manager and head of corporate finance.
And the boss of Rochdale’s housing association has been fired after a two-year-old boy died from mould exposure in one of its flats.
Health equity must become a priority for all owners, occupiers and creators, writes Lambert Smith Hampton’s head of sustainability, Federico Montella.
And finally, Greggs(£) is planning another assault on the “home of the pasty”. The steak bake seller has announced audacious plans to open a store on Truro’s high street. It is a bold move for the baker, which has previously had to shut its Cornish outlets after locals branded it “Satan’s franchise”. Since then it has established outposts on the frontier – a kiosk by the A30 and another hidden on an industrial estate in Launceston. But this new store will be right in the heart of Cornwall’s capital, and close to a Warren’s to boot. That’s fighting talk!
