LandSec makes ‘sound’ progress

Land Securities said in a first-quarter management statement that it had continued to make sound progress on lettings across its development projects and its investment portfolio. The Real Estate Investment Trust said it had also recycled capital through profitable asset sales and continued to bring forward several new development opportunities in both its London and retail portfolios.

Total property sales in the quarter totalled £177.1m at 7.9 percent above March 2011 valuation, at an average yield of 4.1 percent. LandSec achieved capital expenditure on developments in the quarter of £42.2m and total property acquisitions reached £18.5m at an average yield of 2.1 percent.

Francis Salway, chief executive, said: “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 had meant the company had over the last few months also begun to step up its activity in retail development predominantly in edge of town locations and it now had a £275m, 1m sq ft, pipeline of opportunities to meet the growing demand from food and fashion retailers for space, he said.