Land Securities PLC has posted a 15 per cent rise in full-year pretax profit as well as a double-digit rise in its net asset value.
The REIT has announced that it is now looking for projects under development so that it can continue to profit from the lack of Grade A office space in London.
“We remain of the view that our markets are in recovery mode and we see particularly strong growth prospects in London over the next few years,” said Chief Executive Francis Salway.
“We may continue to see ripples in prices, but we go into the new financial year confident in our plans and well-positioned to address growth opportunities.”
Land Securities is currently developing the building that has been dubbed the Walkie Talkie on 20 Fenchurch Street. It is due to be completed in 2014 and it is said that already the City of London is considering acquiring office space in the building.
Shares in Land Securities’ biggest rival, British Land, also benefitted from the slowly recovering British property market, experiencing a climb of 5.8 per cent.
Meanwhile, British Land’s development, the Cheesegrater, also due for completion in 2014, has confirmed its first tenant. US insurance giant Aon has pre-let 191,000 square feet of the 610,000 square foot building.
The 47-storey 736-foot building is due to become one of London’s tallest buildings when it is completed and is one of a number of ongoing projects in the capital, where office space is among the most expensive in the world.
Also due for completion in 2014 is the Shard, which will be the tallest building in the EU when finished.
Editor’s notes: In 2022, Landsec posted profits of £875 million compared to £1,393 million in 2021 representing a 60 per cent decrease.
The company’s portfolio was valued at £12 billion compared to £10.8 billion the previous year representing an increase of 10.1 per cent. Landsec advised that it had delivered £5.1 million in social value in 2021/2022.
* In June 2017, Land Securities rebranded as Landsec.