When the boss of Britain's largest property company says "the yield re-pricing of UK property assets is close to having run its course", he means that the country's runaway commercial property market has peaked.

Francis Salway, the chief executive of Land Securities and its £14.8 billion worth of assets, has a reputation for business acumen and understatement. When Mr Salway calls the top of the market, the market should listen. Only last month HSBC sold its Canary Wharf headquarters for over £1 billion at a record low yield of 3.8 per cent, a lower return than sticking money into a cash savings account.

Mr Salway also said that "lesser quality" retail property had fallen in value over the past six to nine months. Land Securities will be less affected than other developers since it has good quality retail, and has been building up its Trillium outsourcing arm in preparation for a downturn.

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BACKGROUND

• Reits bring succour to a jaded market

• Land Securities calls top of the property market

• Land Securities to start year as a Reit

Comment: On the roof

It would be sensible to pay attention to the view from the top of the property industry

Related Internet Links

• Land Securities company information

• Land Securities loses £1.28bn on property values

• Land Securities forecast

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