Land Securities, owner of the Kingsway West retail park in Dundee and Britain’s biggest landlord by market capitalisation, is celebrating an increase in footfall and sales at its shopping centres.
Portfolio sales of almost £890 million in the nine months to December 2014 were 15% ahead of the valuation figure for the group, which also has substantial property interests in London and 29 Ibis and Accor hotels throughout the UK.
Land Securities sold more than £700m worth of smaller shopping centres in the three months to December in a restructuring of its portfolio in response to changes in the retail sector.
Chief executive Robert Noel said: “Our business and markets are in good shape.
“In London, rental values are rising due to a shortage of new commercial space just as we are delivering a major programme of office and retail space to the market.
“Interest in our developments is strong, and on terms ahead of our valuers’ most recent estimates.
“In retail, we have completed the transformation of our shopping centre portfolio under our strategic focus of dominance, experience and convenience. Footfall is up and sales are up.
“Although there is political uncertainty at home and abroad, we expect interest in our schemes to remain strong, reflecting both the quality of our portfolio and the lack of supply in London.”
The group whose Scottish interests include the Buchanan Street and Galleries centres in Glasgow, Almondvale South in Livingston, and Kingsway West in Dundee reported sales of £701.6m during the third quarter.
This brought the total to £886.4m for the nine months to December 31, which was 15% ahead of March 2014 valuation.Acquisitions of £933.9m and development and refurbishment expenditure of £316.1m were made for the nine months to December 31.
The third quarter saw the sale of Cabot Circus in Bristol for £267.8m, the Centre and Almondvale West Retail Park in Livingston for £224.1m, and Princesshay in Exeter for £127.9m.
The remaining 50% interest in Buchanan Galleries, Glasgow, was bought for £137.5m.
The Mark Lane offices overlooking the Thames in London were sold for £73.2m, and the remaining 50% stake in Thomas More Square in the capital was bought for £85.3m.
Of the remaining 1.4m ft2 to be let, 87,000ft2 is in solicitors’ hands, with major developments in London on target for completion this year.
The strong balance sheet and growing dividend showed adjusted net debt down to £4,179m, and the group loan-to-value ratio down from 33.6% to 31.4% at the end of 2014.
The third interim dividend of 7.9p per share will be paid on April 10.