Trafford ‘resilient’ despite Brixton’s 10% fall in value

Manchester agents for the UK's largest industrial landlord Brixton, owner of more than 2.5m sq ft of premises in Trafford Park, said occupancy levels and rental values remained "steady" at the Greater Manchester site, as the group revealed 10% had been wiped off the value of its portfolio.

Brixton reported a net loss for the first half of £235m, or 86.8p a share, compared with a profit of £192m, 70.9p a share, last year. Net asset value fell 18% to 448p a share.

The company said its portfolio fell in value by £220m, or 10%, compared to a UK industrial average decline of 8.2%.

Paul Daye, partner at P3 Property Consultants, Brixton's Trafford Park letting agent, said: "Our monthly report for Brixton shows a pretty resilient, steady picture with vacancy rates under 10% and rental values holding firm.

"There are less people able to buy freeholds at the moment and so there is also a flight to leasehold which suits Brixton."

Brixton has retained CB Richard Ellis to market a small development plot at Wharfside, Trafford Park, where it sees little room to add value itself.

Daye added that Brixton remained in the market to acquire further sites at Trafford Park "at the right price" although potential vendors tended to over-value their stock given the group's high profile.

The company's interim results showed net rental income lifted 14% to £44.9m. The overall vacancy rate, excluding new stock, rose to 10.5% from 9.7% at the end of 2007.