17th Jul 2014 08:07
LONDON (Alliance News) - Commercial property investors Land Securities Group PLC Thursday said it made a strong start to 2014, as it attempts to shift its retail portfolio towards what it calls "dominance, experience and convenience" through the sale of assets which do not fit well with its current strategy.
Land Securities is targeting profitable sites across London which could provide significant returns in the long term.
In a first quarter interim management statement, the real estate investment trust said it sold the The Bridges shopping centre in Sutherland for GBP125 million, and acquired a 30% stake in Bluewater shopping centre in Kent for GBP696 million.
In London, the company said it signed GBP15.2 million worth of development lettings since April 1, with a further GBP6.7 million currently in solicitors' hands. In addition, 62 Buckingham Gate, near St James's Park underground station is now 65% let with a further 4% in solicitors' hands, while 20 Fenchurch Street, nicknamed the 'Walkie Talkie' building, is 87% let with a further 3% in solicitors hands.
Land Securities said it signed GBP4.2 million of investment lettings since April 1, with a further GBP10.4 million of lettings currently in solicitors' hands.
Overall, the FTSE 100 REIT said it has made good progress with the development of new retail centres in key locations such as Oxford and Glasgow. In Oxford, retailers John Lewis and Associated British Foods PLC-owned Primark have committed to space at the Westgate shopping mall.
Financially, Land Securities said adjusted net debt at June 30 stood at GBP4.66 billion. Group loan-to-value ratio on a "proportionate basis" at the end of June was 36.2% compared with 32.5% at March 31.
Land Securities shares were up 1.2% at 1,040 pence early Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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