Land Securities retail sales grow in third quarter

22nd Jan 2014 07:29

- Strong growth in developments in Q3- Improved occupancy- Retail sales up 3.9 per cent- Reduced net debtCommercial property group Land Securities has made 'good progress' on developments and seen improved occupancy in the third quarter, according to a trading update on Wednesday. The company has signed £7.3m worth of development letting since October 1st with a further £7.9m in solicitors' hands. In London, the firm has let 93% of 123 Victoria Street and 57% of 62 Buckingham Gate and pre-let 64% at 20 Fenchurch Street. During the period that company announced the development of offices at 20 Eastbourne Terrace in west London. This 92,800 sq ft development will be completed in December 2015 at and estimated cost of £66m.Elsewhere in the UK, the group successfully launched Trinity Kitchen and a Primark store in Trinity Leeds. The Primark store opened on December 3rd and in the weeks leading up to Christmas had more than 80,000 visitors per week. The shopping centre is now 96% let.The retail portfolio saw a 3.9% increase in sales compared to a year earlier. On a same store like-for-like basis, sales rose 0.8% versus the British Retail Consortium national non-food sales figures for the same period, which was up 1.7%. Voids and units in administration in the portfolio were down 3.7% like-for-like at the end of December, compared to 4.1% at the end of September. The group continued to recycle capital with disposals totalling £116 in the period. The main disposal was the Bon Accord and St Nicholas Centre in Aberdeen, which sold for £94m.At the end of the period net debt fell to £4.02bn from £4.42bn at the end of the prior quarter. A third interim dividend for the current financial year of 7.6p will be paid on April 11th.RD