British Land confident over commercial property prospects - commercial mortgages

13 August 2007

British Land should remain confident that its quarterly results will show continued growth among its commercial and retail properties, one observer has advised.

The real estate investment trust (Reit) has been predicted to see net asset value rise from 1,688p to 1,725p when the results are published, according to analyst predictions cited by the Independent.

Landlords with commercial mortgages are continuing to see demand hold, according to the latest Royal Institution of Chartered Surveyors (Rics) commercial property survey, with British Land likely to remain similarly optimistic.

"Although the cycles are broadly correlated [any housing market slowdown] should not affect the above average growth commercial and retail properties of British Land," commented Martin Allen from Morgan Stanley, according to the paper.

"People will be scrutinising the company''s results for signs of a slowdown but at the moment we are unlikely to see one," Mr Allen added.

The Rics survey had also reported that demand was now at a six-year high.