Property developer Land Securities鈥� portfolio and profit up on rising London demand

Sika Sarnafil Chosen for Walkie Talkie's Curved Walkways

Land Securities has posted bumper results with pre-tax profit more than doubling to 拢2.4bn in the year to March, as the firm鈥檚 chief executie Robert Noel said the developer鈥檚 鈥渨ell-timed鈥� London development push was paying off.

Land Securities鈥� pre-tax profit was up from 拢1.1bn the previous year, while the value of its portfolio rose by 拢2bn to 拢14bn as office supply constraints in the capital pushed up property values.

Noel said that over the year the developer 鈥渞eached the peak of our construction activity in our committed programme, just as the vacancy rate of quality office space in London was heading towards all-time lows.鈥�

Noel said it enjoyed 鈥渞ecord leasing levels鈥� across the company鈥檚 London development programme.

Land Securities stole a march on rivals by committing to several major office schemes during the downturn, including the 20 Fenchurch Street tower, popularly known as the Walkie Talkie, which is now 92% let.

The firm still has 1.1 million sq ft to let in its development programme in London, but is confident of securing tenants due to the 鈥渓ack of available, efficient, technically resilient space for businesses鈥� in the city.

Land Securities added 21 Moorfields - a Crossrail oversite scheme at Liverpool Street - to its development pipeline in February, adding to its development plans at Westgate in Oxford, Buchanan Galleries in Glasgow.

Land Securities said any further development commitments beyond its current programme 鈥渨ill be based on pre-lettings鈥�.

The firm provided an update on its vast Nova mixed-use project in Victoria, where 133 of the 170 apartments are pre-sold, 12% of the office space is in solicitors鈥� hands and 66% of the retail space is pre-let or in solicitors鈥� hands.

The firm鈥檚 1 New Street Square development is fully let to Deloitte on a 20 year lease and 1&2 New Ludgate are 84% let or in solicitors鈥� hands.

The company during the year disposed of 47 Mark Lane, EC3; its 50% interest in 12/24 Oxford Street and 3-5 Tottenham Court Road and in March exchanged contracts to sell Times Square, EC4, for 拢284.6m.

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