Land Securities have announced they are ready to invest in a set of major developments in Central London after securing a high number of lettings in the third quarter of 2009.
The planned developments will cost £655 million in total and are due to be completed by summer 2013. Capital expenditure for the project is estimated to be around £345 million. The project includes work on Park House on Oxford Street and two schemes in Victoria; Wellington House and Selborn House. The UK’s biggest commercial landlord was unwilling to say more about the future but did say that it was expecting good rental growth from the West End in the next 12 months.
Once completed the projects will provide more than 50,000 square feet of office and retail space and 120,000 square feet of residential space. The firm’s shares currently stand at 7 pence per share.
Figures out show £9.8 million of new lettings were achieved by the firm in Q3, while a further £22.6 million worth of deals remain in solicitors’ hands.
Land Sec also recently bought Glasgow’s Atlas shopping centre, marking the firm’s return to the market. During the credit crunch the landlord was forced to put many projects on hold including the St Johns Precinct development.
The firm believe now is the right time to return to the Central London market, following news rents have increased in the last few months. If the developments are completed on time, they could become some of the first new office space to be available following the recession. This could soon be snapped up amid fears there will be a shortage of office space in Central London in the coming years.