Land Securities reports good levels of interest
Land Securities this week reported that it had performed well during the final three months of 2012 – the third quarter of the group’s financial year. In a “difficult” market, the group said interest levels in its London offices and retail portfolios had remained high.
“In London, we now have over 50% of 20 Fenchurch Street, EC3 [the Walkie-Talkie building], either pre-let or in solicitors’ hands with the latest addition, Royal Sun Alliance, securing four floors. Trinity Leeds is now 90% pre-let or in solicitors’ hands ahead of its opening in March,” said chief executive Robert Noel.
The office space in the City at the One New Change scheme is now fully let, and the City retail premises at the same development more than 99% let, the group said. In the West End office space development at 123 Victoria Street, 58% is now let with another 19% in solicitors’ hands. The group has completed £4.4m of investment lettings across its London portfolio at 9.1% above ERV since 1 October.
During the quarter, Land Securities also gained outline planning permission for a major mixed-use development in Harrow at the 57-acre Kodak site, of which it currently owns 30 acres.
In its retail portfolio, the 185-221 Buchanan Street scheme of retail space in Glasgow is now 99% pre-let and will open in March. The group plans to submit revised plans soon for an extension to Buchanan Galleries. It secured £4.8m of retail investment lettings during the quarter which, excluding two short-term leases and the pre-development lettings at the Westgate Centre in Oxford, were 3.0% below ERV.
Since Jessops, HMV and Blockbuster went into administration this month, units in administration across the group’s retail portfolio have risen to 2.2%. Land Securities says retail sales in its shopping-centre portfolio for the final quarter of 2012 were up 0.3% from the previous year on a like-for-like basis, beating the BRC national non-food sales figure for the same period of 0.1%.
Within its out-of-town programme, Land Securities is progressing plans with Birmingham City Council and Sainsbury’s to develop the former industrial site at Battery Park in Selly Oak into a new store for the food retailer together with catering and student accommodation.
“We remain focused on our clear plan to invest in and develop the right space in the right place at the right time, utilising the strength of our balance sheet,” noted Mr. Noel. “We have good levels of interest in all our schemes and we are confident that our strategy will continue to deliver growth for shareholders.”
