Daejan says Brexit is a challenge for UK property business

Daejan Holdings said Brexit posed a challenge to its UK business as the property investment company posted lower first-half profit.

Pre-tax profit for the six months to the end of September fell to £56.6m from £65.1m a year earlier. The decline was caused by a reduction in gains from investment properties to £29.5m from £38.6m.

Daejan, which invests in property in the UK and the US, said the value of its portfolio was growing moderately in both markets and ental income was also rising.

The company, whose investments include Africa House on Kingsway in London, is controlled by the Freshwater family who built a property empire after Osias Freshwater fled Poland in 1939, eventually reversing into the listed shell of a former plantations group and keeping the name.

Daejan said: "Since the Brexit referendum the UK has been dominated by political and economic uncertainty which has led to reduced forecasts for economic growth. This combination of factors will provide a challenging environment for our UK business. In the USA the economic outlook is more encouraging and should provide a positive environment to grow our business."