Land Securities Group is accelerating a strategic pivot towards retail property, planning to sell more of its London offices to reinvest in what it sees as a higher-growth area.
The British property developer said Tuesday it has sold or has in legal process 644 million British pounds of assets since March, including 295 million British pounds of offices in the capital.
The company said it intends to speed up these sales over the next 12 to 18 months and will not commit significant capital to new development projects in the near term.
Landsec stated that major retail remains its "highest conviction call," citing superior income returns and attractive growth.
Its confidence is supported by strong performance, with rental uplifts on new retail leases and renewals rising to 13% in the current fiscal year, up from 7% last year, according to the company.
Retail sales and footfall across its portfolio have also materially outperformed the national average in the five months to August, the company said.
Landsec is targeting annual growth of 4.5% to 7% in net rental income from its existing major retail portfolio by 2030.
The company confirmed it is on track to meet its financial guidance for the current year.
More from this issuer
Related coverage
Land Securities Group on Tuesday reported a 3.2% rise in first-half underlying earnings, driven by strong rental income growth as its strategic shift towards prime retail properties and away from some offices begins to pay off.