British Land, the developer behind London's 'Cheesegrater'
skyscraper, has reported higher growth than expected in the
valuation of its assets, which rose by 7.5 per cent in the first
half of the financial year.

The FTSE 100 group has benefitted substantially from the current
shortage of London office space, as well as the commercial property
boom currently taking place across south-east England, where it has
made a number of investments in the past six months.

The company has already said it would continue to decrease
leverage, and warned that global market turmoil could affect UK
property values in the future.

Net asset value for British Land increased to 891p per share,
growth that exceeded that of the company's major rival Land
Securities, who reported a 5.7 per cent uplift in the same
period.

British Land, which is structured as an investment trust,
out-performed the IPD all property index by 10 basis points. 
The office and residential portfolio contributed a total increase
of 8.5 per cent to the total portfolio valuation, with the retail
and leisure segment showing a lower rise at 1.8 per cent.

Chris Grigg, chief executive for the company, said:

"What has changed since May is increased uncertainty in global
capital markets. The FTSE has been down by as much as 15 per cent
and there are political events on the horizon which could be
unsettling. What's not yet clear is whether these events will
affect property values in the UK."

The company invested a net £172m with a particular focus on
London, which currently accounts for 58 per cent of the £9.3bn
portfolio, and the south-east which comprises 7 per cent of the
portfolio.

British Land remains the largest UK owner of retail space, and
has continued to update its portfolio for the era of 'click and
collect'.

 

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