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UK's Landsec expects rents to counter lower building valuations
  + stars: | 2023-11-14 | by ( ) www.reuters.com   time to read: +1 min
Nov 14 (Reuters) - British commercial property company Land Securities Group (LAND.L) expects between low and mid single-digit percentage growth in annual London rental values despite continued pressure on building valuations. Valuations have been hit by high interest rates, hurting investment business within the sector and offsetting relatively better performance on the operational front. Landsec, which in May said it would invest more in prime retail space buoyed by a positive outlook for that portfolio, expects earnings per share for the full year to be broadly stable compared with last year's 50.1 pence. Central London accounts for about two thirds of Landsec's property portfolio. Its half-year pretax loss deepened by 0.5% to 193 million pounds ($237.3 million), hurt by declining property valuations.
Persons: Mark Allan, Aby Jose Koilparambil, Rashmi Aich, David Goodman Organizations: Land Securities Group, FTSE, Thomson Locations: London, Central London, Mayfield, Manchester, Bengaluru
Register now for FREE unlimited access to Reuters.com RegisterSept 21 (Reuters) - British landlord Land Securities Group Plc (LAND.L) said on Wednesday it had sold 21 Moorfields, EC2 office property in London to an investment vehicle managed by Australia's Lendlease Group (LLC.AX) for 809 million pounds ($917.08 million). A 568,500 square feet property, 21 Moorfields was fully pre-let to Deutsche Bank (DBKGn.DE) on a 25-year lease for housing the German firm's London headquarters. The FTSE 100 firm said the total consideration from the sale of 21 Moorfields represents a 9% discount to the property's value in March and the net proceeds would initially be used to reduce debt. Landsec has now sold 1.8 billion pounds of London offices following the strategic review in late 2020, when it undertook the decision to raise capital by selling mature office spaces. ($1 = 0.8821 pounds)Register now for FREE unlimited access to Reuters.com RegisterReporting by Aby Jose Koilparambil in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.
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