Land Securities sees strong sector demand as sells London office block

Land Securities Group PLC on Monday announced the £211 million sale of a central London office block to SevenCapital Group.

The London-based property development and investment company said it has exchanged contracts to sell its 123 Victoria Street office in London to SevenCitiesLdn, the regeneration and asset management division of property investment and development company SevenCapital.

The property comprises 245,000 square feet of office space, with an estimated foregone net rental income yield of 6.0% over the next five years.

Landsec will receive £181 million on expected completion next month, with the remaining £30 million payable within 36 months and attracting 6.0% annual interest.

The sale takes office disposals since early 2025 to more than £550 million, as Landsec targets £2 billion of office disposals by 2030.

The transaction reduces net tangible assets per share by 0.3%, while the initial proceeds would reduce its March 2026 loan-to-value ratio by 0.9 percentage points from 38.7%.

Landsec Chief Executive Mark Allan said: "Our primary financial objective is to deliver sustainable growth in income and EPS and the sale of 123 Victoria Street is firmly supportive of that. In total, we have now achieved asset sales of £1.0 billion since we announced our updated strategy in early 2025."

Allan said the firm has continued to see "strong customer demand for our best-in-class assets," which is translating into continued like for like income growth.

"This strong occupational market backdrop and continued progress on asset recycling, coupled with our sector-leading debt maturity profile and highly efficient cost base, means we remain well placed to deliver on the acceleration in EPS growth we set out at our full year results in May," he added.

Shares in Land Securities were up 1.4% at 626.50 pence each in London on Monday morning, with the wider FTSE 100 up 0.5%.

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