The painful fall in the value of Land Securities estate is a consequence of two things: bond market chaos in the aftermath of last year’s mini-budget and doubt over whether demand for central London offices and shopping centres will be there to push rents higher, or sustain them at all.
The commercial landlord, which is one of Britain’s largest, swung to a £622 million pre-tax loss last year, on the back of a £827 million markdown in the value of its property, equivalent to a 7.7 per cent like-for-like decline.
The higher cost of capital that has accompanied the rapid rise in interest rates and pushed down the price potential acquirers are willing to pay might be easier to get a handle on.
The market
