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Land Securities well placed to "exploit medium term opportunites"

Land Securities it is now focusing on securing lettings and is well placed to start three new projects in the West End of London in 2010.

In a third quarter trading update Land Securities said the business was positioned to exploit medium term opportunities with three new London development projects to start in 2010 with a total development cost, including land and finance, of around £655 million.

Mace, Wates and Sir Robert McAlpine have each been appointed for the projects.

Land Securities said it achieved £249.3 million of investment property sales in three months to December 2009, 1.2 per cent below the three months to September 2009.

Land Securities chief executive Francis Salway said: “The business continues to perform well against our operational targets and we are pleased that our portfolio is proving its appeal to occupiers with ongoing lettings, while our financial strength allows us to be first off the block with our London development programme.” 

The three major new London developments are:

  • Park House, Mayfair - This scheme covers an entire city block of just over an acre on a prime Mayfair site with frontage onto Park Street, North Row and Oxford Street. It will provide 165,000 sq ft of offices, 90,000 sq ft of retail and 60,000 sq ft of residential in 39 units. The total development cost, including land, finance and residential costs, is £415 million of which the remaining capital expenditure to complete the scheme is £185 million. Construction will begin in May 2010 for delivery in late 2012.
  • Wellington House, Buckingham Gate - The new Wellington House scheme will be a residential development of 60,000 sq ft providing 59 units. The total development cost, including land, finance and residential costs, is £55 million of which the remaining capital expenditure to complete the scheme is £30 million. Demolition will begin in April 2010 for delivery in mid 2012.
  • Selborne House, Victoria Street - This scheme will provide 250,000 sq ft of office accommodation, together with street-level shops and restaurants. The total development cost, including land and finance, is £185 million of which the remaining capital expenditure to complete the scheme is £130 million. The programme for start on site is being finalised, but the scheme is expected to be completed in 2013.

Also, during November 2009, full planning consent was granted at appeal for a 1 million sq ft mixed-use development of Arundel Great Court, WC2.