Nationwide results scarred by commercial property

June 7, 2014

The good part was the 56% rise in underlying profits to £475m but a decent chunk of property-related losses from the retail sector and elsewhere are washing up at Nationwide’s door

Nationwide is entitled to a boast or two. The building society had a decent crisis, maintaining capital strength and even helping up to mop up a few spillages elsewhere, such as the over-extended Dunfermline Building Society.

But chief executive Graham Beale should be careful not to overdo the hyperbole. A casual reader of Wednesday’s full-year figures could be forgiven for thinking the Nationwide had a near-perfect year. A better description would be: strong but with one horrible scar.

Thinking about property? Now could be the right time

June 7, 2014

/ admin

Properties deals are ripe for the picking, says Angela Dennis

The news over the past few years about commercial property has often involved doom and gloom, with premises becoming vacant and some companies being tipped into insolvency by their property commitments. But a lot of problems were due to the fact property had been acquired years ago on inflexible terms, such as rents that were too high, or having to pay three months rent in advance.

The commercial property market has evolved considerably over recent years, particularly with the pressure resulting from the tough economic times. There are now deals on offer which could make it worthwhile businesses dipping their toe back into property before things change again. I believe there is unlikely to be a better time to do deals and, in some cases, property can be just the launch pad a business needs to move to the next level.