News that property business British Land has seen a post-tax loss of £1bn this year demonstrates the challenge posed by e-commerce and home working post-pandemic, according to Hargreaves Lansdown.
British Land’s property portfolio has taken a 10.8% value write down, to £9.1bn, while underlying profit fell 34% to £204m as rental income fell.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “There is no mistaking the challenge British Land is facing.
“It’s not only being threatened by the rising tide of homeworking, but like a sandcastle, it faces fresh erosion from the heavy spade of e-commerce.”
Streeter explained that the business was coping with these issues by selling £1.2bn in assets, including £556m retail space and £643m offices sales.