Land Securities has warned of uncertainties ahead of next year’s UK election, but is nevertheless confident about the outlook.
Its shares have been lifted 34p to £11.45 as the property group behind London’s Walkie Talkie skyscraper and the management of the Bluewater shopping centre in Kent reported an 11% rise in net asset value at the half year. Pretax profit jumped from £397.9m to ££1.03bn.
During the half it reshaped it shopping centre portfolio, buying a 30% stake in Bluewater and selling sites in Bristol, Exeter and Sunderland. In London the company said it was seeing “a more confident market” and had achieved good lettings. The Walkie Talkie, also known as 20 Fenchurch Street, is 90% let. But chief executive Robert Noel said:
The referendum in Scotland showed how an unexpected turn in the polls can affect market sentiment and business and political decision-making. No doubt the run up to the general election in May next year will bring similar uncertainty.
However, extraordinary events aside, we do not expect to see a correction in the balance between supply and demand in London as we deliver our committed speculative schemes. With availability of of office space nearly all-time lows, favourable conditions remain.
In retail we expect consumer trends and customer demands to lead to rental growth in the best retail destinations and will continue to reshape our portfolio accordingly.
