Despite announcing a significant rise in the value of its assets, one property investment firm remains cautious over the commercial market.
A leading UK
property investment firm remains cautious over the state of the UK commercial property market, despite announcing a bump in the value of its assets.
London & Stamford Properties has posted a 17.4 per cent annual rise in asset value, yet the
commercial development firm claims that a difficult environment for tenants is making it "increasingly cautious".
This increase was down to yields, which have now reached unsustainable levels, according to the company chairman Raymond Mould.
"We have however become increasingly cautious over further investment as prime yields tightened to potentially unsustainable levels in what we considered a most demanding tenant environment," he said.
Mr Mould concluded that this course of action will continue underpin the company's strategy in the future.
Another company announcing a large rise in its asset values this week, Shaftesbury Plc, suggested that the commercial property market in London is in very good health.
Posted by Pete White.
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