Landsec, the largest commercial property company in the UK, has reported a turnaround in its financial performance as both shoppers and workers begin returning to UK cities. The company has stated that it achieved pre-tax profits of £275 million for the six months ending on September 30, marking a significant recovery compared to the £835 million loss recorded in the same period the previous year. This positive outcome can be attributed to the stronger-than-anticipated economic rebound from the COVID-19 pandemic.
Besides witnessing the return of footfall to stores and offices, Landsec’s commercial property portfolio also experienced an increase in value. The portfolio saw a rise of £81 million, which helped offset the £1.6 billion reduction in value suffered during the previous financial year when the industry was severely impacted by the pandemic.
Over the past six months, Landsec has made strategic moves in its efforts to accelerate growth and revitalize its business. The company disposed of assets worth £250 million, while simultaneously acquiring properties worth £616 million. CEO Mark Allan has emphasized Landsec’s goal of shaping three distinct places: major retail destinations, mixed-use urban neighborhoods, and central London offices.
In addition to its focus on growth, Landsec has demonstrated its commitment to sustainability by announcing plans to invest £135 million in reducing carbon emissions from its estate by 70% by 2030. This aligns with the company’s objective of creating a greener and more sustainable future.
Furthermore, Landsec recently confirmed its acquisition of U+I, a developer specializing in regeneration projects, valued at £190 million. This purchase grants Landsec ownership of significant plots of land in Manchester and London. Additionally, the company acquired a majority stake in MediaCity in Salford, which is home to popular broadcasters BBC and ITV, for £425.6 million. These strategic acquisitions are expected to provide Landsec with greater opportunities for growth and diversification.
Mark Allan, the Chief Executive of Landsec, has expressed optimism about the future of the company. He believes that Landsec’s actions during the pandemic, as well as its recent endeavors, have propelled it into a strong financial position with increased operational activity. Allan anticipates further progress and success in the coming months. From an enriched financial performance to strategic acquisitions and a focus on sustainability, Landsec is well-equipped to thrive in the ever-evolving commercial property landscape.
Useful links:
1. Landsec Sustainability Initiatives
2. Landsec Portfolio Properties
