The end of the era of cheap money has revived a rare phenomenon in UK real estate: valuations are dropping even as rents rise, Bloomberg News reported. Landlords including Land Securities Group Plc, British Land Co., and Great Portland Estates Plc reported rising rents for their offices, warehouses and even stores this week but it wasn’t enough to prevent them writing down valuations. Its a reflection of the degree to which the sector is being battered by rising interest rates, which have overwhelmed the typical interaction of supply and demand.
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Superdry Plc is seeking to tap investment funds to repay banks on a loan due in January as the cost of living crisis hits consumer spending, Bloomberg News reported. The London-listed clothing company has been sounding out potential new investors to replace an asset-backed facility worth £70 million ($83 million), according to people familiar with the matter, who asked not to be named because the talks are private. The company said that it’s in “positive ongoing discussions with lenders” when contacted by Bloomberg News, reiterating what it said in a quarterly report published last month.
The U.K. government announced sweeping tax increases and spending cuts on Thursday, becoming the first major Western economy to start sharply limiting its spending growth after years of ramped-up fiscal stimulus during the pandemic and recent energy subsidies, the Wall Street Journal reported. The measures mark a second major shift in U.K. economic policy in just a matter of months, after previous British Prime Minister Liz Truss spooked financial markets by pledging to jump-start growth with tax cuts funded by more borrowing.
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Croydon Council claims it has been forced pull funding from dozens of local charities as it works to balance its books after the borough had to declare bankruptcy. The authority said it will not renew its community fund when it comes to end in March 2023, MyLondon.com reported. Documents from 2020, when the fund was rolled out, shows the £2.6 million fund gave cash to more than 50 organisations and projects.
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The U.K. arm of Sanjeev Gupta’s steel empire has struck a preliminary deal with major creditors that could let it stave off insolvency proceedings by restructuring its debts, BM Magazine reported. Liberty Steel Group has reached a preliminary agreement with Credit Suisse Asset Management, Greensill Capital and Greensill Bank to restructure its debts, the steelmaker said in a statement. If finalized, the agreement in principle would see Liberty’s creditors adjourn their petitions to wind up Gupta’s embattled steelmaking firm.
Lisa Osofsky, director of the U.K.’s Serious Fraud Office, will leave her job in August 2023 after completing her five-year tenure with the white-collar crime prosecuting agency, the Wall Street Journal reported. The U.K. attorney general’s office will start its search for her successor immediately, the person said in an email, adding that Ms. Osofsky will remain in her job for a short period after her tenure ends if needed. The leadership of the SFO by Ms. Osofsky, a former U.S.
Joules Group Plc is set to file for insolvency after the British retailer failed to secure bridge financing or raise equity, putting around 1,600 jobs at risk, Bloomberg News reported. The clothing chain, known for its colorful coats and Wellington boots, said it will appoint Interpath Advisory as administrators to protect the interest of creditors. Shares have been suspended. Joules warned last week that it would struggle to repay a £5 million ($5.9 million) loan due at the end of this month amid weaker-than-expected sales and reduced cash flow.
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The U.K. economy contracted in the three months through September, as high energy prices and rising interest rates mark the beginning of what policy makers expect will be a long-lasting recession, part of a downturn that is likely to affect much of Europe in the coming months, the Wall Street Journal reported. The country’s gross domestic product was 0.7% lower on an annualized basis in the third quarter compared with the three months through June, the U.K.’s Office for National Statistics said Friday.
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Life doesn’t get much easier for troubled EV maker Arrival: Shares in the Nasdaq-listed, but UK-based, company have continued to slide – falling from $0.42 to $0.38, following a worrying third quarter trading update from the company, capital.com reported. Arrival revealed a loss for the period of $310.3m, compared to a loss of $30.6m in the third quarter of 2021. This Q3 loss in 2022 included non-cash impairment charges and write-offs of $232m. Adjusted EBITDA loss for the period was $73.3m, compared to an adjusted EBITDA loss of $45.9m in third quarter of 2021.
The American owners of Liverpool F.C., one of soccer’s most storied teams, have hired Goldman Sachs and Morgan Stanley to explore a sale of the club, a six-time European champion, according to two people with direct knowledge of the team’s plans, the New York Times reported. Word that Liverpool’s owners are mulling a potential sale comes only months after a group led by the California-based investment fund Clearlake paid a record $3 billion for Liverpool’s Premier League rival Chelsea.