March 16 Growth in British commercial property
prices slowed for a second month in February, a closely-watched
index showed on Thursday, denting a recovery seen in the last
quarter of 2016 following Britain's vote to leave the European
The value of British commercial property assets grew 0.17
percent in February compared with January, according to MSCI's
IPD real estate index, overshadowing largely stable
rental growth, with total returns falling to 0.625 percent in
February from 0.71 percent in January.
The IPD real estate index is one of Britain's most widely
watched commercial real estate data surveys, and tracks about
10.5 percent of professionally managed British property across
all sectors, including retail and office property.
The February index was based on data from 3,046 property
investments with a total capital value of 44.6 billion pounds
($55.04 billion), MSCI said.
Many occupiers have curtailed expansion plans after the
Brexit vote, dampening expectations for rents and making buyers
and owners more cautious.
Great Portland sold the Facebook London
headquarters building at a discount, while British Land
managed to secure an above valuation price for the Cheesegrater
city office building.
Some financial firms, among the biggest users of office
space in London, have warned they could move jobs overseas if
they lose their ability to service EU clients from the UK.
($1 = 0.8104 pounds)
(Reporting by Esha Vaish in Bengaluru; Editing by Alexander