Morning:
8°c
THE worst appears to be over for the retail property market, Liberty International - the owner of Covent Garden market - said today.
The shopping centres group, which also owns Lakeside, said the market has stabilised thanks to a drop in the number of tenants going bust and a slowdown in the decline in property prices.
"The last quarter of 2008 was the worst ever for the sector but valuations are now stabilising for the type of quality assets Liberty holds," chief executive David Fischel said. But he cautioned: "We are seeing stability not recovery."
Liberty trimmed pre-tax losses for the six months to the end of June by 1% to £451.9 million compared with the same period last year, on the back of revenues almost flat at £306.2 million. Rental incomes dipped 2% while the value of its portfolio has dropped 12.4% to £6.1 billion since the start of the year.
Fischel added that Liberty has now finished shrinking its portfolio, having sold £187 million of property this year, but ruled out going on a buying spree.
Covent Garden has been Liberty's star performer, with 99% of sites occupied, up from 97% last December. Its restaurants and stores have received a boost from currency-conscious tourists coming to the capital, but Liberty has also tried to attract more Londoners to the area.
Reader views (1)
Well done Gordon Brown for rescuing the country from the worldwide economic recession, which has hit many other countries far harder than it has us here in the UK
- Keith Price, Luton, England, 03/08/2009 12:01
Report abuse
