Land Securities, Britain’s largest real estate investment trust, promised to raise more cash by selling off assets. As the sector faces "one of the most challenging periods in generations."
Land Securities own over £12bn worth of property. Their portfolio includes properties such as the Bullring in Birmingham. The group completed the sale of its Trillium arm just in the last few days to Telereal in a deal worth £750m. It used the cash proceeds, worth £440m and the £213.8m from the sale of other assets to help pay down debt.
As financial markets worldwide have disintegrated the company has been hit by the rise of retail tenants going insolvent or not renewing their leases.
Another property company, Hammerson, is to sell its largest property, the 773,931 sq. ft Bishops Square office development in the City. It has instructed CB Richard Ellis to find buyers. The asking price is £500m which equates to a yield of 6.75 per cent. It has been suggested that the property could be split into four equal tranches to make the sale more attractive.
