Central London Property Losing Haven Status as Bears Move In - Bloomberg Business

Central London Property Losing Haven Status as Bears Move In - Bloomberg Business:

"Landlords owning some of central London’s most valuable real estate, a haven for investors for the past five years as they sought to combat record-low interest rates, have fallen into the grip of the bears.
Land Securities Plc, Workspace Group Plc and British Land Plc, declined more than 24 percent in London trading since Oct. 28, when the FTSE 350 Real Estate Investment Trust Index reached its highest level since January 2008. That compares with an almost 14 percent decline for the broader FTSE 350 Index.
Slumping commodity prices, emerging-market turmoil and an increasing supply of office space are damping demand for property, even though asset values have yet to fall. The amount of cash sovereign wealth funds have available to spend on real estate investment and development in central London dropped by 2 billion pounds to 16 billion pounds from May through November, according to CBRE Group Inc."



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