Land Securities has high hopes for Leeds

Land Securities is stepping up its activity in retail development in a bid to capture growing demand for floor space from food and fashion retailers.

In its first-quarter interim management statement, Land Securities said it had continued to make sound progress on its development projects and investment portfolio.

In the trading update, Land Securities revealed that planning permission had been achieved for the 90,000 sq ft letting to Primark at Trinity Leeds.

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The statement added: “Still 20 months from completion, the scheme has moved from 51.8 per cent let in March 2011 to 54.8 per cent let at June with a further 3 per cent in solicitors’ hands.”

“The outlook for development in London remains attractive and, despite the mixed messages in the retail sector, our leasing activity demonstrates that the stronger retailers are looking to take new space,” chief executive Francis Salway said in the statement.

Land Securities said the void level on its retail portfolio of like-for-like properties was 4.1 per cent at June 30, from 4.5 per cent three months earlier.

“This retail demand has meant we have over the last few months also begun to step up our activity in retail development predominantly in edge of town locations,” Mr Salway said.

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Land Securities said it has a £275m ($440 million), 1 million square feet development pipeline of opportunities to meet the growing demand from food and fashion retailers for space.

“Once again, we will look to marry our development expertise with retailer commitment to a scheme before we take these opportunities forward,” Mr Salway said.

Land Securities also said it had made good progress on its London development pipeline. Its London portfolio void levels totalled 3.8 per cent at June 30, from 3.9 per cent at March 31.

In May, the company said it intended to develop more prime central London offices to capitalise on a wider-than-expected shortfall in supply.

The company’s adjusted net debt totaled £3.99bn, against £4.18bn at March 31.