Falling demand harms Land Securities

Land Securities Group, Britain’s largest listed property developer, reported that demand for London office spaces was “hesitant” and vacancy rates continued to rise.

Chief executive Robert Noel said in a statement: “Uncertainty hangs over many issues and businesses find themselves in uncharted territory.

“These conditions are having a tangible effect on the commercial property market.

“Looking ahead, we expect both our market sectors to see a general weakening of net effective rental values ...but our high quality, well-let portfolio should mean we are relatively insulated.”

The developer of London’s “Walkie Talkie” 20 Fenchurch Street building said its adjusted diluted net assets per share - a measure of the value of a developer’s buildings - fell 1.8 per cent to 1,408 pence per share in the six months to September 30.

Last year former professional rugby player Rob Jewell took over from Leeds businessman Gerald Jennings as its portfolio director after the latter assumed the role of president of the Leeds Chamber of Commerce.

Although based in London he plays an active role in managing the two Leeds developments which have enjoyed much success in terms of attracting tenants and shoppers to the city.

Land Securities last year announced plans to extend the White Rose Centre by adding leisure facilities to the development.

It also recently announced that retail giant Next had secured planning permission to relocate to the unit left vacant by the collapse of BHS.