Land Securities on pounds 650m buying spree
Thursday 21 May 1998
The scheme, the largest it has undertaken since the property market was booming a decade ago, comes hot on the heels of a pounds 420m development programme the group has just completed.
The news came as Land Securities unveiled a strong set of results for the year to March.
The sharp growth in the property market helped net assets per share rise 18 per cent to 924p. Pre-tax profits increased 9 per cent, to pounds 266m.
Ian Henderson, Land Securities' managing director, ruled out any corporate activity, saying that the group was not considering any mergers or acquisitions.
"We see a lot of speculation about mergers. But it is very difficult when assets are standing at a premium to make any sense of those transactions," he said.
Land Securities said that demand for property was strong across the board. The group plans to continue to concentrate on the central London office market, the out-of-town retail market, some industrial developments and "one or two leisure opportunities".
Mr Henderson said the company's policy of selling properties which no longer provided future growth and replacing them with buildings giving increasing income in the future, might mean that short-term profits could be hit. The group disposed of pounds 247m of property during the year as part of its effort to churn its estate.
However, he said that the property market was unlikely to return to the boom times of the 1980s. "I think it's steady as we go," he said.
Mr Henderson pointed out that the market had so far ridden the strength of sterling, higher interest rates and the economic turmoil in Asia well, but he remained cautious about the future.
Peter Birch, the former chief executive of Abbey National, is to become chairman of the group this July, replacing Sir Peter Hunt, who died in December last year. Land Securities shares closed down 6p at 1,016p.
Arsenal 1 Everton 1: Substitute equalises with six minutes to go
food + drinkMichelin-starred Tom Sellers on being this year's hottest property
booksGeese, gorillas, grandads... and growing up
tvParents (and kids) rejoice! A new wave of fantastic family entertainment is here
food + drinkHow one grocery e-tailer is gearing up for the Yuletide rush
food + drink
Nelson Mandela: 11 inspirational quotes to live your life by
Queen to miss Nelson Mandela funeral over security and long-haul flight concerns
'Never a good time to increase MPs' pay': Jack Straw defends politicians' 11% pay rise in face of public outrage
The 'terrorist' and the Tories: What did Nelson Mandela really think of Margaret Thatcher?
Japan cracks down on leaks after scandal of Fukushima nuclear power plant
- 1 Hundreds arrested as Canadian police smash worldwide paedophile ring
- 2 Sherlock series 3: Benedict Cumberbatch and Martin Freeman provide teasers for the biggest comeback in British television
- 3 The man who made Femen: New film outs Victor Svyatski as the mastermind behind the protest group and its breast-baring stunts
- 4 Mass murder in the Middle East is funded by our friends the Saudis
- 5 Japan cracks down on leaks after scandal of Fukushima nuclear power plant
- < Previous
- Next >
iJobs Money & Business
£25000 - £50000 per annum + Benefits + Bonus: Harrington Starr: C++ Server Dev...
£300 - £350 per day: Harrington Starr: Leading Electronic Trading Software Ven...
£80000 - £100000 per annum + benefits + bonus: Harrington Starr: Project Manag...
£50000 - £60000 per annum + benefits + bonus: Harrington Starr: Business Analy...