British Land has posted a 1.4% hike in property value during the second quarter
One of the UK's biggest property owners has said it was pulling out of the "worst storm in real estate history" as it reported the first quarterly rise in the value of its portfolio for more than two years.
Office and retail landlord British Land - whose portfolio includes a 50% stake in the Meadowhall shopping centre near Sheffield - posted a 1.4% hike in property value during the second quarter.
This was the first rise since June 2007 and marked a turnaround on the double digit quarterly falls seen at the height of the crisis last year, which hit commercial property values hard.
British Land, which tapped shareholders for £740 million earlier this year to shore up its balance sheet, is now ramping up its deal pipeline after confirming interest in £2.5 billion of potential investments.
But the group revealed a mixed first half, with the woes of the first quarter dragging the valuation down by 2.4% in the six months to September 30.
It remained in the red with pre-tax losses of £113 million, but this was significantly better than the £1.3 billion loss seen a year earlier after hefty property writedowns took their toll.
The group confirmed "encouraging signs" and said valuations were being helped by a shift in investor appetite combined with a limited number of properties coming on to the market.
Chris Gibson-Smith, chairman of British Land, said: "In charting a course through the worst storm in real estate history, the board has been careful to ensure we use the voyage to prepare British Land for greater achievements."
The group now has the "capacity and willingness to be bold", he added.
As well as seeing its property prices plunge throughout the financial crisis, British Land's retail and office tenant base were also badly impacted, with company failures soaring over the past two years.
