Europe

No change in UK and EU valuations post-Brexit

Two listed property companies have released valuation updates to the end of June that say it is too early to tell of the effects of the referendum on property values, both in the UK and on the continent.

As a result, neither have recorded its effects on portfolios values.

Unite Students announced a 1% increase in the value of its Unite UK Student Accommodation Fund and the London Student Accommodation Joint Venture to a combined £2.9bn in Q2.

It said the referendum had resulted in a period of uncertainty, but the valuations of the two portfolios were taken before the vote and therefore do not reflect the uncertainty.

It said the increase in values was driven by rental growth, and it expects demand to continue due to the strength of the UK higher education market.

Meanwhile the board of the European Real Estate Investment Trust said values had increased by 0.1% in the half year to June, to €31.9m (£27.3bn).

It said the valuers, CBRE, had not included this in the appraisal: “It is not clear to what extent other EU markets will be affected by this decision and we will be monitoring the markets closely. We recommend that the valuation is kept under regular review.”

The lag in accurate data following the referendum means property valuations could be in state of uncertainty for a number of months.

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