British Land turns around from property bubble losses

British Land today swung back into profit as it booked the first full-year increase in the value of its portfolio since the property bubble burst three years ago.

The landlord and developer posted profits of £1.13 billion for the year to March 31 after two years of heavy losses, including £3.93 billion last time around.

Its property portfolio, which includes the Broadgate Estate in the City, rose 13.5% in value to £8.54 billion after crashing 40% during the slump.

Chris Grigg, the company's chief executive, said: "It has been an extreme period of volatility but we have performed well."

The firm is pumping £500 million into three developments in London — including new offices for UBS in Broadgate as well as projects at Regent's Place and Baker Street — to take advantage of the recovery.

Grigg said: "Virtually everyone stopped development for two or three years so there is a real shortage of supply.

"We have really seen the leasing market pick up — people are looking for new space."

Net asset value per share rose 27% to 504p.