Brixton warns on property market
Posted by admin on 19 August, 2008 under Business news, Credit crunch, Property investment | 
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Property developer Brixton has said the commercial property market has become more challenging in the wake of the credit crunch and economic slowdown.
The industrial real estate specialist reported a pre-tax loss of £236.7m ($442.1m), compared with a profit of £191.7m in the previous year.
Investment profit fell 3.9% to £22.3m, but rental income rose 13.5% to £39.4m.
Shares in UK housebuilders Persimmon, Taylor Wimpey, Bovis, Barratt and Bellway all fell by close of trade.
Persimmon shed 8.1%, Taylor Wimpey fell 9.6%, Bovis declined 6.1%, Barratt slipped 8.6% and Bellway was 4.6% lower.
Persimmon is due to announce its half-yearly results on Thursday and they will be closely watched by the market.
Brixton’s shares fell 6% or 15.25p to 232.5p on Tuesday morning.
Brixton, which rents out industrial buildings and warehouse properties, said its first-half results reflected the uncertainties of the market.
It also said that since April, sentiment had worsened and there were indications of a downturn in activities.
Brixton, whose portfolio is largely concentrated in south-east England or near Heathrow Airport, said “potential near-term distress should bring opportunities” in the company’s specialist sector.
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