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British Land Co. sees early signs that UK real estate values may be bottoming out after marking down the value of its portfolio by 12.3% to £8.9 billion ($11.1 billion) in the year through March. Its shares fell.
Valuations have been hit by rising interest rates, which have pushed up yields on other assets, meaning investors in turn demand higher returns to justify the risk of investing in property. That’s been partially offset by rising rents even against a backdrop of anemic economic growth.
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