Record losses at Land Securities

PROPERTY giant Land Securities, which owns racecourses and shopping centres across the North West, has revealed record losses as a number of its retail tenants fell into administration.

The group, whose portfolio includes, Liverpool’s St John’s and Clayton Square shopping centres, as well as Aintree Racecourse and Chester retail parks, said losses in the 12 months to end of March increased from £830m to £5.19bn.

The group, which in March was appointed as a joint development partner to help plan a downsized version of the delayed Northgate redevelopment scheme in Chester, has been hit hard by the downturn in the commercial property market. It has seen its portfolio slump by £4.1bn, £3bn more than in 2008.

Earlier this year, Land Securities raised £756m in a rights issue and also sold its property services division Trillium in a move to slash its debt. It also shelved plans to demerge its retail and office businesses into separate businesses.

Chief Executive Francis Salway said: “This year the UK commercial property sector saw the sharpest fall in capital values on record as the full severity of the economic downturn hit the sector.  Our actions have given us protection from the downside of further significant falls in values.”