Property developer and investor Land Securities is planning to sell its stake in a leisure portfolio for £650m in order to provide a ‘war chest’ to invest in more London property.
The Sunday Times says that
Landsec has agreed to sell its 95% share of the X-Leisure Unit Trust – which is
behind developments including the Xscape leisure destinations and Brighton
Marina – to private equity property investor CIT Partners.
The report says that Chief
Executive Rob Noel, who is due to leave the company next year, is keen to
expand Land Securities’ presence in the London
property market as the retail and leisure sectors continue to struggle.
Land Securities Group plc or Landsec is believed to be the largest commercial property development and investment company in the UK. The company owns over 26m sq ft of commercial property including retail and office property in the UK.
That such a major investor is planning to move money out of leisure and into commercial and retail at the moment is unlikely to go unnoticed as a indicator of the prospects of these particular markets.