Land Secs seeks Walkie Talkie partners
Yesterday the Cheesegrater, today the Walkie Talkie. Land Securities is dusting off plans to develop its unusually-shaped tower at 20 Fenchurch St in the City of London, joining the list of key sites that look set to be restarted as demand rises for prime office space in the City of London and supply remains limited.
The group said it was exploring options to develop the Walkie Talkie tower as a joint venture, as it today reported full-year results broadly in line with expectations, unveiling a 16.5% increase in adjusted diluted NAV to 691p per share.
Land Securities thinks occupier markets in London will be stronger than for its retail portfolio, and so plans to focus development on the capital. It has four developments underway in London totalling 110,170 sq m of space for delivery between 2010 and 2013, as well as 272,200 sq m of London development schemes that have secured planning, plus another 111,100 sq m of development and refurbishment schemes in the capital that are at the design stage.
The group plans to “crystallise rent levels through lettings close to the time of scheme completion” in London, but for its retail portfolio it aims to secure a significant level of pre-letting for its developments before starting work. It says the relatively high level of available retail space means that rental trends are likely to remain flat in the short term before returning to moderate growth.
Chairman Alison Carnwath said: “The commercial property market now enjoys a brighter outlook, but I do not expect the trajectory of growth to be smooth. It may take the UK economy a number of years to regain full strength. During this extended recovery period we are likely to see volatility in consumer spending and business investment, and our market may well experience bumps as a result. We are well prepared for these dynamics.”
