Land Securities today produced a strong first quarter interim management statement, as the UK’s largest property company continued its stellar performance since the market downturn.
The FTSE 100-listed REIT said that it had sold £177m of assets in the three months from 31 March to 30 June, at an average of 8% ahead of book value. Its sale of London office assets proved particularly profitable.
The sale of its development at 110 Cannon Street netted £52m, which LandSecs said accounted for all of its expected development profit.
It is also going full steam ahead with its strategy of undertaking development to maximise profit. As well as beginning City office developments such as the 20 Fenchurch Street “Walkie-Talkie” tower and 375,000 sq ft of office at 30 Old Bailey and 60 Ludgate Hill, it has also earmarked a £275m pipeline of smaller retail developments which it will now commence.
These developments will be anchored by fashion or food retailers, and total 1m sq ft.
Residential development has also proved profitable for the company. At Wellington House, SW1, sales have been agreed on three of the five remaining penthouses at prices which are slightly ahead of the company’s forecast of £2,000 per sq ft. Following the sales only 6% by floor area will remain unsold. Completion of the scheme remains on schedule for July 2012.
And as revealed by Property Week (finance, 24.6.11), it is now looking for a housebuilder to partner with on its huge residential development at Ebbsfleet in Kent.
Land Securities chief executive Francis Salway said: “While the quarter has seen a period of uncertainty in the wider economy, our activities show that our plan continues to deliver opportunities for value creation. The outlook for development in London remains attractive and, despite the mixed messages in the retail sector, our leasing activity demonstrates that the stronger retailers are looking to take new space.
“This retail demand has meant we have over the last few months also begun to step up our activity in retail development predominantly in edge of town locations and we now have a £275m, 1m sq ft, pipeline of opportunities to meet the growing demand from food and fashion retailers for space. Once again, we will look to marry our development expertise with retailer commitment to a scheme before we take these opportunities forward.
“We entered the financial year with a clear plan, and the letting and sales activity we have undertaken in the first quarter underpins our confidence in this plan.”
No comments:
Post a Comment