Land Securities has put its money where its mouth is by designating £200 million for new building schemes next year. The money will be used for two significant mix-used developments, which will include retail, residential and office space – all without bank funding. Land Sec, the UK’s largest property developer, appears confident about the prospects for the recovery of the commercial property market.
Although the two schemes are speculative and have not been pre-let, work will begin in 2010, with completion hoped to coincide with a wider recovery in the economy – in particular, when more businesses are in a position to look for new office space.
Recently some critics have cast doubt on the commercial property market’s recovery, suggesting that it has been driven by investor interest and is not underpinned by a real improvement in the state of the broader economy.