Property company Land Securities confirmed its intention to expand its retail portfolio in half-year results published today.
During the six months to September 30th its total rental values rose by 1.1 per cent across its like-for-like (LFL) portfolio.
Its valuation surplus is 3.4 per cent or £314.1 million since 2010 and acquisitions by the company totalled £174 million during H1.
Francis Salway, Land Securities CEO, said: “Our results reflect the benefit of moves we have made to position the business for the recovery in the market.
“We have committed significant capital to developments and it is already driving returns with a valuation uplift on our development programme of just under ten per cent in the six months.”
Land Securities confirmed that it has already let 50 per cent of the Trinity Leeds centre currently under construction.
At the end of last month the One New Change shopping centre opened in the City of London and it has full tenancy.
Salway continued: “In retail, we have commenced developments selectively when supported by retailers through pre-lettings. And we see further opportunities in this area, particularly in edge-of-town locations targeted by supermarkets and other retailers.
“All our activity is underpinned by a focus on income and we managed void levels down further in our retail portfolio. We have also met with considerable success on asset management lettings in London since the half-year date.”
The company has agreed 82,513 sq ft of retail space to be let to Primark in three separate transaction during the half.
Also, LFL shopping centre and retail warehouse voids decreased to 4.9 per cent from 5.5 per cent in March 2010.
Salway concluded: “Market conditions in our sectors are slightly more favourable than we expected at this point, with low gilt yields supporting buying interest from investors and the growth plans of large companies generating take-up of space.”