Property developer LandSec sinks to loss in ‘uncertain waters’

Property markets will remain subdued as the UK “navigates uncertain waters” in the run-up to Brexit, the head of the UK’s biggest listed player said on Tuesday.

LandSec, which slipped to a £251 million pre-tax loss in the year to March after the cost of refinancing part of its debt pile, also appointed City veteran and current board member Cressida Hogg as its new chairman today.

The firm insists it is well-placed for a tough market but will not commit itself to more big schemes in London without lettings agreed in advance, reducing the risk.

The value of its £14 billion portfolio fell by £91 million.

Despite surprise leasing strength in London’s commercial office market last year — helping developments such as Victoria’s Nova fill up — chief executive Rob Noel said: “We are navigating uncertain waters in the near term and we expect investment and leasing volumes in the property market to be more subdued.”

In the wake of the financial crisis eight years ago, LandSec pulled the trigger on speculative schemes such as the Walkie-Talkie skyscraper, but Noel added: “Right now we’re not sure that you are being over-rewarded for the risk you’re taking when you speculatively develop, so why do it?”

Shares fell 9p, or 1%, to 959.8p.