Brixton warns on property market

The firm has warehouse properties in south-east England

Property developer Brixton has said the commercial property market has become more challenging in the wake of the credit crunch and economic slowdown.

The industrial real estate specialist reported a pre-tax loss of £236.7m ($442.1m), compared with a profit of £191.7m in the previous year.

Investment profit fell 3.9% to £22.3m, but rental income rose 13.5% to £39.4m.

Shares in UK housebuilders Persimmon, Taylor Wimpey, Bovis, Barratt and Bellway all fell by close of trade.

Persimmon shed 8.1%, Taylor Wimpey fell 9.6%, Bovis declined 6.1%, Barratt slipped 8.6% and Bellway was 4.6% lower.

Persimmon is due to announce its half-yearly results on Thursday and they will be closely watched by the market.

Brixton's shares fell 6% or 15.25p to 232.5p on Tuesday morning.

Brixton, which rents out industrial buildings and warehouse properties, said its first-half results reflected the uncertainties of the market.

It also said that since April, sentiment had worsened and there were indications of a downturn in activities.

Brixton, whose portfolio is largely concentrated in south-east England or near Heathrow Airport, said "potential near-term distress should bring opportunities" in the company's specialist sector.