Land Securities defies the gloom with £275m schemes

Land Securities is understood to have lined up seven new projects on behalf of retailers such as Primark and Sainsbury’s. They will total one million square feet and provide 1,000 jobs.

The plans show that some retailers are still willing to expand, even as chains such as HMV, Mothercare, JJB Sports and Thorntons look to close stores in the face of a slump in consumer confidence.

Land Securities, which is due to issue a trading update tomorrow, has 20.6 million square feet of retail accommodation comprising 25 shopping centres and 20 retail parks.

Locations include the White Rose shopping centre in Leeds and 50 per cent stakes in Cabot Circus in Bristol and the St David’s Centre in Cardiff.

The pipeline of new projects is understood to feature a new Morrisons in Crawley, a 70,000 sq ft Primark store in Kent, a Tesco development in Taplow, an extension to a retail park in Derby and an extended Sainsbury’s store in Wandsworth.

Most of the demand for new space is being driven by supermarkets, which are proving more resilient to the downturn than other retailers.

The FTSE 100 Index company is also working on its £350m Trinity Leeds centre, which is the largest development outside the capital since the credit crunch and will have tenants such as Marks & Spencer when it opens in 2013.

Land Securities said it was making “excellent progress” with the development, while also investing in its northern flagship, the White Rose shopping centre,.

The Trinity Leeds scheme is almost 60 per cent pre-let, two years ahead of opening in spring 2013.

Land Securities’ portfolio director Gerald Jennings said: “We think this is a fantastic level of commitment just under two years before opening.

“Over the next few months we will announce a stream of new lettings.

“This is a vote of confidence in Leeds and our scheme, which was the first major retail-led development in the UK to start on site since the economic downturn.”

Trinity Leeds is cashing in on the fact that it will be the only UK scheme to open in 2013, with none opening in 2012.

“This puts us in a very advantageous position,” said Mr Jennings.

“Whatever happens with the economy, retailers will still need to open new stores. Trinity Leeds is the only opportunity in the timeframe.”

Once the scheme opens it will propel Leeds into the top three retail destinations in England, behind London and Birmingham.

Leeds currently lies in sixth place behind London, Birmingham, Manchester, Nottingham and Liverpool.