Wednesday 16 May 2012 3:09 am

Land Securities says Eurozone crisis denting London office sales

Land Securities, the biggest listed British property developer, said demand for office space in London was lower than expected due to the worsening turmoil in the Eurozone. The joint developer of the Walkie Talkie skyscraper in the City of London financial district said on Wednesday firms were delaying moves due to economic uncertainty. “We remain consistent in our view that supply-constrained conditions will lead to rental growth, although these conditions are taking longer to emerge,” it said. Lawyers were dealing with potential leasing deals for the equivalent of eight percent of the tower’s floor space, it said. Other London skyscrapers – the Shard, the Pinnacle, the Cheesegrater and the tower at 100 Bishopsgate – are at varying stages of build and have only signed one office deal between them. Land Securities said its adjusted net asset value per share rose 4.5 per cent to 863 pence in the year to end-March, while the value of its property portfolio dropped to £10.3bn from £10.6bn as valuation growth failed to offset sales of £906m.

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