Commenting on the Results for Fletcher King, Chairman David Fletcher said:
“Our excellent performance this year was significantly influenced by the fees and profits earned on the sale of 145 Leadenhall Street, a property owned by the SHIPS 14 Syndicate in which the company co-invested and acted as adviser. The underlying business performed much in line with last year.
The unexpected vote to leave the EU has had a destabilising effect on the market and the uncertainties are likely to influence it for some time to come. However, with no debt and cash reserves, we are well placed to weather challenging times as we have done on numerous occasions in the past.”
The Commercial Property Market
The market generally has seen reasonably strong demand from both tenants and investors. However this demand diminished somewhat in the lead up to the EU referendum. This was particularly noticeable in the investment market. The stamp duty increase of 1% didn’t help and data from the Investment Property Databank (IPD) showed capital values in Q1 2016 falling for the first time for some years albeit by only 0.2%. UK investors have been net sellers in Q4 2015 and Q1 2016 and the outlook post Brexit is currently uncertain.