Land Securities building bright future

LAND SECURITIES, the owner of the White Rose Shopping Centre and Leeds Shopping Plaza, today said it was well placed to ride out the turbulence being felt in world financial markets as it had made moves to anticipate falling property values.

The company sold property valued at more than £2bn in 2007 as part of a “long term approach” to its business.

In an interim management statement today, Land Securities said it had sold £507.8m worth of its portfolio during the third quarter of its financial year.

In Yorkshire, however, Land Securities beefed up its presence by acquiring a 75% stake in the Trinity development site in Leeds.

Plans were unveiled last year for the new £650m one million square foot shopping centre in Leeds city centre. Trinity Leeds is being created by Land Securities and Caddick Developments, which owns the Trinity Quarter next to Leeds Shopping Plaza.

Located between Briggate and Commercial Street, the scheme will involve the existing planning consent for development of the former Burton Arcade together with redevelopment and remodelling of Leeds Shopping Plaza, to provide a shopping centre running from Briggate to City Square and incorporating Albion Street.

The aim is to create a single retail focal point in the heart of the city to serve the 2.2 million people living within 30 minutes' drive.

During the quarter, Land Securities invested £159.3m, which included the purchase of the Maltings shopping centre in Salisbury from Leeds-based Town Centre Securities for £27.5m.

The acquisition was carried out through Land Securities' Harvest Partnership joint venture in association with Sainsbury's, which also saw the company deliver a Sainsbury's store in Hull.

Francis Salway, chief executive of Land Securities, said: “We have again achieved high levels of activity across the group, notwithstanding challenging conditions in the property investment and credit markets.

“Our successful performance is based on the effective management of our portfolio delivered in line with our long term view of the market. This means that, whilst our investment portfolio will not be immune from the general negative trends, we are well placed to run the business in the current environment and to exploit opportunities that may arise.”

The company said its London property portfolio would deliver 148,600 sq m of office space by the end of its financial year.

Land Securities also owns the Coppergate Centre in York.

The company announced a third quarter dividend of 16p.