London — The UK’s biggest real estate investment trusts (Reit) are so well prepared for a rough Brexit, they could suffer if it doesn’t turn out to be all that bad. The six largest London-focused Reits, including Land Securities Group, British Land, and Great Portland Estates, have hoarded cash equal to about a third of the total spent annually on central London office buildings, Bloomberg Intelligence senior industry analyst Susan Munden wrote in a note on Tuesday. Spending it wisely will be a challenge if Brexit doesn’t cause prices to drop as much as expected, she wrote. The UK’s vote to leave the EU triggered panic withdrawals from property funds amid concerns that demand for commercial buildings would fall. Deal volumes recovered in the last quarter of 2016 as demand for office space held up better than expected and investors kept their faith in real estate and the premium returns it offers over stocks and bonds. "The outlook for London offices remains a challenge, but losses o...
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