New Leeds shopping centre to go ahead
As predicted in the national press, Land Securities today confirmed that work is start on the Trinity Leeds development – the first major shopping centre project in the UK since the start of the economic downturn.
In a statement to the London Stock Exchange this morning the group said it had only committed itself to the 750,000 sq ft development after achieving its pre-letting threshold. The scheme is now 43% let, with a further 4% in solicitors’ hands, it noted. Lettings that have been completed so far include Next, Top Shop, River Island, Cult and Hollister, with an extension and new entrance into Marks & Spencer.
Land Securities estimates the total development cost of the scheme (including land and capitalised interest) at £350m and says additional capital expenditure will be about £240m. The expected gross yield on cost is 8.0%. “The construction contract is due to be signed imminently with project completion due for Spring 2013,” it added.
The group also announced progress on its London development pipeline – in June it forward-sold Park House, W1 to Barwa for £250m, enabling it to deploy the capital in this asset elsewhere. At 62 Buckingham Gate, construction of 270,000 sq ft of office space will start in September 2010 with completion due in April 2013. At One New Change, EC4, the retail space is now 98% let or in solicitors’ hands and practical completion of the development to shell and core is due in October 2010. The City office space at One New Change is around one-third pre-let and will be available for occupation in June 2011.
