Brexit wouldn’t be that bad, says property boss
The incoming chief executive of property firm Helical Bar has said that the idea of Brexit is not as catastrophic as some are claiming.
Speaking to City PM, Gerald Kaye said: "It's causing some uncertainty in the market, but Brexit may not be quite as bad as some people suggest.
"But the money is on us remaining."
Property investors have made more pessimistic predictions, with nearly three in four saying they think Brexit would make the UK a less attractive investment option in a CBRE poll in February.
Kaye said that "it feels a bit like August at the moment" because deals are being stalled until the referendum is over. However, he was confident the momentum in the property sector would pick up after the country has gone to the polls.
Read more: Blame Brexit: International investors are finally shunning London property
Kaye was speaking to City PM about Helical Bar's record full-year results, announced today. The firm boasted the best rental levels, investment gains, pre-tax profits, shareholders' funds and EPRA net asset per share in its 32-year history.
Profit before tax was up 37 per cent year-on-year, to £120.1m. Net asset value per share rose 19.7 per cent to 461p, compared to 385p in 2015.
Read more: EU referendum could hit London's property market, according to KPMG
The company also had a total property return of £170.6m, up 10 per cent from £155.3m last year. Kaye said he was glad to see the company's strategy had "come to fruition".
Helical Bar's property portfolio in London currently accounts for about 80 per cent of the company's property return; Kaye spoke enthusiastically about the firm's acquisition of office space around Old Street, having taken full control of The Bower development in east London from venture partner Crosstree at the end of last year.
"It's just a fun, interesting area to be in," he said. "The old location rule of where businesses are have changed."