Shares in Land Securities pushed ahead after the commercial property group revealed a massive hike in profits.
The firm revealed pre-tax profits of £1.03 billion for the six months to September 30, up from £397.9 million the previous year, as it saw a return from the transformation of its shopping centre portfolio.
The company has drawn back on its Scottish presence in the past 12 months, having sold its stake in Aberdeen’s Bon Accord and St Nicholas shopping centres and divested its interest in the Designer Outlet Centre at Livingston.
It also completed the £125m sale of Dundee’s Overgate to Legal & General in March, although it retains a significant interest in the city through its ownership of Kingsway West Retail Park.
In an interim update yesterday, Land Securities said it had been boosted by a £657m investment in Bluewater in Kent and a £137.5m move last month to take outright ownership of Buchanan Galleries in Glasgow.
“We are executing our strategy at pace, transforming the quality of our retail portfolio, delivering a sizeable development programme in London and making a positive contribution to the communities in which we operate,” CEO Rob Noel said.
“By funding this activity through recycling capital, our objective is to have better assets let on longer leases and lower gearing as we move through the property cycle.”
Mr Noel said the firm would continue to reshape its retail portfolio in the months ahead, but a spokesman for Land Securities would not comment on what the future held for its Kingsway West development.
The park is valued at between £50m and £100m. It extends to 300,000ft2 of selling space, houses 19 retailers and produces an annualised rent of £4.9m.
Looking ahead, Mr Noel said Land Securities was well placed.
“The referendum in Scotland showed how an unexpected turn in the polls can affect market sentiment and business and political decision-making,” he said.
“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.”
Shares in the company closed the day up 2.34% at 1,137p.