British Land results boost commercial property sector - commercial mortgages

16 August 2007

British Land has reported that pre-tax profit for the second quarter of the year rose by £3 million to stand at £76 million, boosting those with commercial mortgages as they look for signs as to the future direction of the sector.

The group also saw gross rental income rise, up 2.3 per cent to stand at £180 million, with net rental income rising by £3 million to reach a new figure of £267 million.

Strong retail demand had contributed to the figures, British Land chief executive Stephen Hester noted, with the CEO particularly bullish about office space in London.

"If there is any city in the world that I would like to have office space in, it is London," Mr Hester commented.

"It is the service industry that drives London, and over the long term it is an expanding industry. There will be cycles and at some stage there will be less demand, but London is in very good shape," he added.

British Land''s current projects include a planned extension of Regent''s Place in the capital.