REG - Land Sec. Group PLC - Landsec Capital Markets Event & operational update

Land SecuritiesAnnouncement

27/09/2023 07:00

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RNS Number : 7409N  Land Securities Group PLC  27 September 2023

27 September 2023

Land Securities Group PLC

("Landsec")

 

Landsec Capital Markets Event and operational update

 
Landsec's Central London business continues to see strong customer demand

 

Landsec will host a Capital Markets Event for analysts and investors this
afternoon at its London office developments, Lucent at Piccadilly Circus and
n2 in Victoria, which completed earlier this summer. This will include an
update focused on the operational performance of its Central London business.

 

Since the end of March, customer demand for Landsec's best-in-class office
space in London has remained strong. As a result, over the first five months
of the financial year, occupancy in the company's Central London portfolio
increased by 100bps to 96.9%, with £17m of lettings signed or in solicitors'
hands, on average 3% ahead of ERV.

 

In Victoria, which makes up nearly half of Landsec's Central London business,
the company's existing office portfolio is now 100% let. In addition, its
recently completed development at n2 is now 80% let with the remaining 20% in
solicitors' hands (up from 66% let and 6% in solicitors' hands in May) whilst
Lucent is 62% let with a further 14% or in solicitors' hands (up from 19% and
53% in May). Reflecting the strong demand, rents across both schemes are more
than 10% ahead of initial assumptions.

 

With rents continuing to grow and its entire office estate in Victoria 100%
full, Landsec has now committed to the start of Thirty High (formerly Portland
House), which is expected to complete in the summer of 2025. The total
development cost for this major refurbishment is estimated to be c. £400m,
with a gross yield on cost of c. 7.5% and a gross yield on the c. £240m capex
investment of over 12%.

 

Mark Allan, Chief Executive, commented:

 

"Over the past year, we have been decisive in positioning the business for a
higher for longer interest rate environment. Our disposal of £2.2bn of
mature, mostly single-let offices, predominantly in the City, before the start
of this financial year has proven very timely. As such, we have flexibility to
respond to the opportunities that will start to arise from the adjustment to a
higher rate reality, as it remains clear that customer demand for the most
sustainable, high-quality space in the best locations remains resilient."

 

Ends

 

 

 

 

 
About Landsec

 

 

At Landsec, we build and invest in buildings, spaces and partnerships to
create sustainable places, connect communities and realise potential.  We are
one of the largest real estate companies in Europe, with a £10.2 billion
portfolio of retail, leisure, workspace and residential hubs. Landsec is
shaping a better future by leading our industry on environmental and social
sustainability while delivering value for our shareholders, great experiences
for our guests and positive change for our communities.

 

Find out more at landsec.com

 

 Please contact:
 Press                     Investors
 Sara Doggett              Ed Thacker
 +44 (0)7834 431258        +44 (0)7887 825 869
 sara.doggett@landsec.com  edward.thacker@landsec.com

 

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