Commercial mortgage holders 'may see growth'

21 May 2010

Written by Gavin Elley.

Commercial mortgage holders may see a rise in the amount their property is worth in the next year, according to predictions by property investment company Great Portland Estates.

The firm has reported a 6.7 per cent rise in the value of its portfolio in the last three months and a 15 per cent increase over the last year.

Adjusted net assets grew by 15.5 per cent per share, adjusted profit before tax was up 31.5 per cent, while adjusted earnings per share gained 11 per year-on-year.

Toby Courtauld, chief executive of the company, said the recovery of the London property investment market had accelerated in the last six months, boosted by a large volume of capital competing over a small number of assets.

Further increases in rental values are vital to the sustainability of recent capital value rises, he added, though he expected to see office rents improve later in the year.

The Investment Property Databank reported this week that capital appreciated at a rate of 0.8 per cent in April.

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