British Land is ploughing ahead with its speculative development at 100 Liverpool Street despite posting a £205million pre-tax loss for the first half of the year
The developer claimed its speculative development commitments remained modest at 5 per cent, but that the Hopkins-designed 100 Liverpool Street, which sits within its Broadgate Campus, would benefit from the new Crossrail station.
According to the AJ’s sister title Construction News, chief executive Chris Grigg said the company would continue to act cautiously in the uncertain environment and was unlikely to commit to further major developments without a pre-let – as indicated in its last results.
‘We will, however, take steps to progress our optionality to commit to these development opportunities when we see demand, and have achieved several planning successes in the period,’ he added.
Sir Robert McAlpine was appointed as the construction partner for the Broadgate Campus in March.
British Land’s commitment comes despite a £205million pre-tax loss for the six months to 30 September, which was largely due to a 2.8 per cent drop in its portfolio valuation.
This compared with a pre-tax profit of £823m for the same period the year before.
The developer blamed the 2.8 per cent drop in its portfolio valuation on the period of uncertainty following the UK’s decision to leave the EU.
Its portfolio valuation dropped to £13.9bn over the period, from £14.6bn for the six months to 31 March 2016.
’The UK’s decision to leave the EU has significant consequences which will result in a period of uncertainty for the UK property market,’ the company stated.
’Reactions have been varied. Some occupiers and investors are choosing to pause discretionary actions in the UK property market until the terms of the UK’s exit become clearer and this has resulted in lower investment volumes across the market, and lower leasing activity in offices.
’Others are choosing to continue with their plans based on the current requirements of their business and their outlook on the impact of the referendum result.
’This is particularly the case in retail, where there has not yet been any discernible slowdown in leasing activity.’
Revenue also decreased to £297million for the period, from £308million for the same period the year before.