Land Securities expects wider range of opportunities in 2011
Land Securities, which this week began work on the Walkie-Talkie office tower in the City in a joint venture with Canary Wharf Group, yesterday announced that it expects a wider range of buying opportunities this year – although bidding may remain competitive. “We remain committed to delivering space into a supply-constrained market,” the group said, with reference to the projected shortage of prime office space in London.
Chief executive Francis Salway said he expected “mixed” news with regard to consumers and the economy during the first quarter of 2011 but added that he thought occupational demand from large companies would remain steady.
The group yesterday updated the market on its portfolio, which spans London real estate and retail properties across the UK. It said the retail element of its One New Change development in London – opened in October – was now fully let, while the offices element was 71% let or in solicitors’ hands. The average office rent on lettings completed so far is £59.40 per sq ft. Leasing progress on its Trinity Leeds shopping centre was also reported as “good”, with 45% of the scheme now let, 12% in solicitors’ hands and a further 8% in advanced talks.
Land Securities made property acquisitions totalling £159.4m during the third quarter of its financial year, at an average 6.8% yield. Mr. Salway noted: “Our focus on executing the plans we laid out for the year is bearing fruit. Having initiated a large development programme, we are delighted to have achieved lettings on a number of projects which will drive both valuation surpluses and income growth.”
