Land Securities to continue construction on £957m pipeline

Grant Prior 4 years ago

Land Securities has signalled its confidence in the long-term prospects of the London office market by continuing construction of 848,000 sq ft across three schemes worth £957m.

Work will finish four months late at 21 Moorfields
Work will finish four months late at 21 Moorfields

The developer highlighted the option in May to pause work at ground level on some of its London schemes as it assessed the impact of Covid-19.

But in an update today Land Securities said work would progress on its three main office-led sites.

It said: “At 21 Moorfields, our 564,000 sq ft scheme which is pre-let in its entirety to Deutsche Bank, we are making good progress and productivity is at around 75% of pre-Covid levels.

“We now expect to reach practical completion in June 2022, four months later than the original programme.

“We are working with the main contractor to ensure onsite productivity improves to mitigate any further delay, and we continue to be in close dialogue with Deutsche Bank, who are finalising their fit-out modifications.

“At Lucent, our 144,000 sq ft scheme in the heart of the West End, we have completed the sub-structure and remain on programme to hand over to the main contractor in February 2021.

“At our 140,000 sq ft site at The Forge (previously 105 Sumner Street), we are on schedule to complete basement and piling works in December, after which we will start trialling our new modern methods of construction approach to manufacture with a ‘kit of parts’ frame.”

Chief executive Mark Allan said: “We are now progressing the speculative schemes that offer the best risk adjusted returns – Lucent and The Forge – in addition to our pre-let development, whilst retaining the remainder of our pipeline in a state of readiness to resume as and when the medium-term outlook for the market becomes clearer.”

“Longer term we remain confident in London’s status and prospects as a global gateway city.

“While Covid-19 has instilled a fear of densely populated areas in the near term, it is also increasingly highlighting people’s desire to come together, the challenges and limitations that emerge when they can’t and the significant network effects of mixing commerce, arts, science and power in one place. Cities, and London in particular, have bounced back from many such crises in the past and will do so again.

“As we emerge from the pandemic, the way employers and people seek to use office space will change as greater levels of remote working become the norm.

“Many of the trends of recent years – the importance of sustainability, greater levels of flexibility, the role of the workplace in a health and wellbeing context – will accelerate. Others, particularly the shift to higher occupational densities will slow or reverse.

“We believe this is likely to lead to a bifurcation in the market – demand for modern, adaptable, high quality space will increase; obsolescence of older, secondary stock is likely to accelerate.

“These are the sort of market conditions that should present opportunities for Landsec to create real value.”

Land Securities also announced its intention to withdraw from the hotel, leisure and retail park markets.

Latest news

Former Crossrail boss Mark Wild to lead HS2

Wild to bear down on spiralling costs and bring rejigged scheme in on time
7 hours ago

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
1 day ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
5 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
4 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
4 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
4 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
4 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
5 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
5 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
5 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
5 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
5 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
5 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
5 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
6 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
6 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
6 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
6 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
6 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
6 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
6 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
7 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
7 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
7 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
7 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
7 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
7 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
7 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
7 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
7 days ago

Contractor services