Land Securities predicts London office space shift as returns to profit

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(Businesshala) – Land Securities, whose $15 billion property portfolio is largely made up of offices in central London, expects growing demand for more spacious locations that require greater physical distance to boost rental prices. allows.

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Britain’s top commercial property landlord said on Tuesday it was seeing greater demand for workplaces with more room, often for multiple floors within a building, as it raised rent levels in London for half a year. Reported return, which was his recovery from COVID. -19 pandemic less.

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Chief Executive Mark Allen told reporters on a call that landlords face a bumpy road to recovery because many workers haven’t returned to offices after working from home, but low footfalls are affecting the amount of space they occupy. which is not required to be committed by the tenants.

“(Tenants) are really interested in getting access to a more flexible space on top of their core, to enable them to expand and scale, depending on whether they have a particular project going on, Or conference space or meeting space,” Allen said.

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Allen said larger tenants were also showing interest in occupying multiple floors within the same property.

FTSE 100-listed Land Securities, which is itself based in London, said it expected to remain “resilient” for the rest of the year.

The net tangible assets of EPRA (European Public Real Estate Association), a measure of the value of its buildings, rose 2.7% to 1,012 pence per share in the September half, the company said in a statement.

Shares of Land Securities rose 5% to 745.8 pence at 1125 GMT, hitting a six-month high.

Land Securities, which last year announced a four-pronged growth strategy including diversification into mixed-use assets, said profit before tax was 275 million pounds ($370 million) in the six months ended September 30, compared with 835 million pounds ($370 million) in the six months ended September 30. pound a year earlier compared to a loss of million.

($1 = 0.7427 pounds)

Reporting by AB Jose Koilparambil in Bengaluru; Editing by Uttaresh V, Sachin Ravikumar and Alexander Smith

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