Jan 27 - UK asset manager M&G on Tuesday warned of a 230 million pound ($314.32 million) one-off hit from the government's proposed property overhaul once the measures take effect, citing an exposure
M&G Anticipates £230 Million Impact from Leasehold Reform Bill
Impact of the Leasehold Reform Bill
Jan 27 - UK asset manager M&G on Tuesday warned of a 230 million pound ($314.32 million) one-off hit from the government's proposed property overhaul once the measures take effect, citing an exposure of 722 million pounds to ground rent assets.
Details of the Proposed Overhaul
Prime Minister Keir Starmer said on Tuesday that Britain will cap ground rents at 250 pounds ($342) a year in an overhaul of its antiquated property system.
Financial Implications for M&G
M&G said that the proposed property overhaul, which it expects to take effect in 2028, would result in a 15 million pound reduction of its adjusted operating profit.
Market Reaction
The reform will apply to more than 5 million leaseholders in England and Wales and will ultimately reduce permitted ground rents to a nominal "peppercorn" after 40 years, the government said in a statement.
Shares of the asset manager were marginally down in early trading.
($1 = 0.7317 pounds)
(Reporting by Sri Hari N S in Bengaluru; Editing by Janane Venkatraman and Harikrishnan Nair)
