Developer Land Securities, former owner of the Kingsway West retail park in Dundee, has warned that a Brexit vote would “be painful for the property industry”.
The FTSE 100 business posted strong full-year trading, but said a vote to leave the EU on June 23 would slow decision-making, drive down demand and lead to falling rents.
Earlier this week rival British Land also warned that a Brexit vote would have an “adverse impact” on business.
Land Securities’ profit before tax fell by 45% to £1.3 billion in the 12 months to the end of March compared to a year ago.
Trading included the performance of Kingsway West retail park until December when Los Angeles-based Ares Management’s real estate funds acquired the 300,000 square feet Dundee site.
Land Securities still owns the developments at Buchanan Galleries and 185-221 Buchanan Street in Glasgow as part of a significant UK portfolio.
Its properties include full ownership or stakes in the Piccadilly Lights building in London, as well as the Bluewater shopping centre in Kent and the St David’s retail development in Cardiff city centre.
It also has 29 Ibis and Novotel branded hotels located throughout the United Kingdom.
The value of Land Securities’ assets rose by 10.3% to 1,482p a share in the period.
Revenue profit, which includes joint ventures, was up 10% to £362 million. Shares lifted almost 3%.
Chief executive Robert Noel said: “We are pleased to report a strong performance for the year.
“Revenue profit and net asset value per share are up, lease terms are longer and, as planned, speculative development exposure and net debt are lower.”
Mr Noel warned: “We believe a vote to leave the EU would lead to business uncertainty while negotiations take place on an exit treaty.
“Over the short term, we anticipate this would drive down occupational demand in our market.
“This would lead to falling rental values and a reduction in construction commitments, particularly in London.
“So an exit could be painful for the property industry and those it supports.”
