Land Securities poised to restart development
Published: 20 May, 2010
An improving retail backdrop is leading Land Securities to dust off mothballed retail developments.
Land Securities saw a significant upturn in the value of its retail assets in the year to 31 March 2010. It declared a surplus for the year of 11.7% overall, with shopping centres and shops up 8.3% and retail warehouses and food stores up 22.5%.
Rental values fell 6.3% for shopping centres and shops, and 4.7% for our retail warehouses and food stores over the year as a whole. Although voids across the portfolio were 5.8% compared to 5.1% at March 2009, the company significantly reduced the proportion of units in administration from 5.1% in March 2009 to 1.8% at year-end.
Richard Akers, managing director of the retail portfolio, said the company had four priorities for the coming year: to expand the out-of-town presence through new acquisitions and development, to focus on meeting pre-letting targets for development schemes, including Leeds Trinity, to protect income across the portfolio and to maintain effective cost control on capital expenditure and irrecoverable costs.
At Leeds Trinity, where planning consent has been granted for 750,000 sq ft of new retail space, Land Securities reported good progress in discussions with retailers. “We are increasingly confident about starting the scheme in 2010 as we move towards the pre-lettings target we have set prior to development,” said Akers.
He said: "We are emerging from very tough conditions in resilient shape. We have protected income, secured new lettings and sold properties with limited growth prospects. We will create future value through continuing to let up vacant space and selectively undertaking development projects with the sound foundations of significant pre-lettings."
