Land Securities says work on Leeds Trinity set to start this year

PROPERTY group Land Securities has revealed that it has either concluded pre-letting or is in advanced negotiations with tenants for the prestigious Leeds Trinity shopping centre.

The announcement comes as the group, which is a major long-term investor in Leeds, moves firmly into recovery after the property downturn.

Land Securities said that assuming negotiations with prospective tenants were successfully concluded work on the 70,000sq m scheme would start this year.

It said the outlook for the commercial property market was always coloured by wider trends in the economy and that it was clear that both in the UK and overseas there were still residual imbalances from the financial downturn.

However, the group expects investor interest in the UK commercial property market to continue although more properties are likely to be brought to the market for sale.

As a result Land Securities is looking to rental values as the next growth driver.

“We are well placed to drive both income and capital returns as rental values recover through our unrivalled development pipeline and an investment portfolio with limited over-renting,” it said.

“Our actions in the year mean we are well placed to exploit recovery in occupier markets, and to respond quickly to a new set of opportunities. With a sound balance sheet and a talented management team, we have the potential to set Land Securities apart and lead our sector in this fast evolving market.”

Pre-tax profits for the year ended March 31 fell from £4.8bn for the same period last year to £1bn.

Revenue was £251.8m down 20% from £314.9m. The firm achieved £58m in lettings over the period.