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Hammerson Plc a leading real estate agency in the UK which owns shares in two of UK’s major commercial structures, Bishops Square Complex and Birmingham’s Bull Ring Mall, states that the fall in the commercial property rates as seen in the previous two years may have reached its final stage.

John Richards, the Chief Executive Officer of Hammerson, expressed a positive view on the drop in property values and rentals throughout the country. He said that the trend was clearly stabilising and in all probability, the market had seen the worst.

Richards, while giving an interview, announced that Hammerson expected the values to start rising soon, along with a decline in the number of vacancies and defaulters.

The UK’s commercial property rates have come down drastically by about 44%, ever since the real estate market achieved its high point in 2007. The main cause for this slowdown is believed to be the economic slump, as well as tighter credit. However, last month saw just a minor decrease of around 1.6% in the value. This is good news for both office space rental and desk space rental markets, as agents within the sector report an increase in enquiries – click here for desk rent UK info.

Hammerson Plc was the first amongst the four leading real estate companies, which raised money from the markets in form of a rights issue. The company’s total wealth reduced from 6.5 billion pounds to 1.5 billion in December as a result of the economic crisis, which was threatening its survival. Therefore, it had no option left but to go for a massive money raising exercise to avoid loan defaults.

This entry was posted on Friday, June 26th, 2009 at 5:45 am and is filed under Commerce Success, Entrepreneurs, PR. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.