Land Securities eyes £650m sale to fund real estate expansion

Land Securities is understood to have agreed to sell its 95 per cent share of the X-Leisure Unit Trust – which is behind developments including Xscape Milton Keynes and Brighton Marina – to CIT. Chief executive Rob Noel, who is due to step down from the company next year, is reportedly keen to expand Land Securities’ presence in the London real estate market as the retail and leisure revenues continue to struggle. A supply-starved office space market in London has led to vacancy rates falling to their lowest level since 2007 over the past year, a recent report found. This lack of supply has driven up rents as occupiers compete over a smaller pool of properties, with prime rents in the West End – London’s most expensive region – climbing seven per cent to £107 per square foot. London offices already make up almost half of Land Securities’ £11.7bn property portfolio, while the company also owns shopping centres including Bluewater in Kent and Gunwharf Quays in Portsmouth. Land Securities had built up its stake in X-Leisure gradually, spending £110.6m on a 42 per cent stake in 2021, and £104m on a further 35.6 stake.