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Developer Land Securities today positioned itself for a recovery in the battered UK commercial property market after two years of carnage.
Chief executive Francis Salway said that after the worst slump in decades — including a 45% drop in values — the firm is looking at development opportunities in London.
“Although property values are still declining, growing investor interest is now evident,” said Salway.
“With a strengthened balance sheet we are now assessing opportunities for new investment. We maintain our view that patience is a virtue and that opportunities will arise over years not just months.”
Land Securites recently completed a £756 million rights issue and has sold another £520 million of properties since 1 April to shore up its finances. It sold £1.1 billion of property last year.
Salway outlined start plans for two West End developments next year — Shelborne House on Victoria Street and Park House on Oxford Street — to open in late 2012 or 2013.
Park House will be the biggest development on Oxford Street in more than 40 years and the largest office development in Mayfair for a decade.
However, Salway said there were no plans “at the moment” to resurrect plans for the Walkie Talkie office development in the City.
“Rents will pick up earlier in the West End than the City,” he said.
Reader views (1)
I fear we are at least two years off the slightest sign of a recovery in the UK commercial property market. And the same goes for the housing sector in spite of RICS talking things up for their shell-shocked members' benefit.
- Ted, London, 15/07/2009 13:36
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