The yields on two and five-year UK government bonds shot up to their highest levels since 2008 yesterday as the market reeled from last week’s not-so-mini budget. Land Securities, one of the UK’s biggest commercial landlords, was among the biggest fallers on Friday. The value of central London offices, which have risen sharply in the past decade, should fall to compensate for much higher debt costs.
For FTSE 100 constituent LandSec, the potential decline in ultra-prime offices could hit twice. First, in the overall value of its vast portfolio and assets in development, and second, in the price it secures for the remaining £700 million in mature London offices that it is seeking to offload as part of a £4 billion disposal programme.
The shares,