Land Securities first off the block with West End development

By DAILY MAIL REPORTER
Updated:

Cashing in on the economic recovery, Land Securities announced today a £655million development programme in London's West End.

The bluechip landlord plans to begin building on three sites, one in Mayfair and two in London's Victoria, next year for completion in 2012 and 2013.

The decision to build is key for the property industry following the prolonged stagnation that saw many projects either postponed or cancelled. It also signals a short-term preference for construction over acquisitions amid fears that UK commercial property prices are overheating, just four months after the market bottomed out.

FRANCIS SALWAY

Turning point: Land Securities is throwing itself in at the deep end with three new projects in London's West End

'Our financial strength allows us to be first off the block with our London development programme,' Chief Executive Francis Salway said, emphasising the fall in his firm's gearing to below 50 per cent and the almost £40million of new lettings generated in its first three fiscal quarters.

Together, the three projects will provide more than 500,000 square feet of new office and retail space. It will also include a further 120,000 square feet of residential accommodation, a change in company strategy inspired by the UK's housing drought.

The construction at Park House in Mayfair and Wellington and Selbourne House in Victoria is also expected to create 5,000 jobs over the next three years.

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