UK property group LandSec's losses soar on pandemic hit (updated)

ICG Longbow Senior Secured UK Property Debt Investments

10/11/2020 08:04

(Adds details from the results, background)
    Nov 10 (Reuters) - British property developer Land
Securities Group Plc's  LAND.L  first-half loss soared to the
equivalent of more than $1 billion as pandemic-hit businesses
held back rental payments, although it expressed optimism about
its London portfolio of assets. 
    Retail property owners and tenants have been working
together to ride out the coronavirus crisis, which has added to
problems such as political uncertainties and the increasing
shift to online shopping.  urn:newsml:reuters.com:*:nL4N27S1LF      
    The company said that like-for-like net rental income during
the period was down 10% and that it had put aside another 87
million pounds against bad debts, adding to an earlier 23
million pound provision.
    Its overall loss before tax soared to 835 million pounds
($1.1 billion) from 147 million pounds a year earlier.
 urn:newsml:reuters.com:*:nASN000IAU
    "The impact on our results from unpaid rent and service
charges has been significant," it said in the trading statement.
    Already troubled by Britain's troubled retail industry,
which has seen a number of bankruptcies and the closure of
several major retail chains, Land Securities Group has been
looking to reinvest in its London portfolio and reduce its
exposure to retail.  urn:newsml:reuters.com:*:nL4N2CU1NJ 
    It pointed at its ability both to use well-priced London
assets if need be to secure more liquidity and at the
opportunities which a slump in office rentals may provide in the
city. 
    "The investment market for high quality London office
assets, such as those owned by Landsec, has remained robust
throughout the pandemic and there is little sign of that
interest waning," the company said. 
    
($1 = 0.7588 pounds)


($1 = 0.7593 pounds)

 (Reporting by Aakash Jagadeesh Babu in Bengaluru; Editing by
Ramakrishnan M. and Patrick Graham)
 ((Aakash.B@thomsonreuters.com;  Twitter: @JagadeeshAakash;))