Landsec is setting aside substantial funds to enhance its shopping centre portfolio amidst a challenging retail landscape.
- The firm plans to invest around £600 million in acquiring prime shopping centres over the coming months.
- Despite the decline in large mall purchases, Landsec remains optimistic about the future of prime destinations.
- CEO Mark Allan emphasises a focus on top 1% assets, avoiding less valuable shopping centres.
- Recent acquisitions include an increased share in Bluewater and ongoing interest in other major centres.
Landsec, a prominent property developer, is strategically positioning itself within the retail sector by allocating substantial funds for the acquisition of premium shopping centres. The firm is preparing to invest approximately £600 million to expand its portfolio, focusing on prime locations that promise future relevance and profitability.
In recent years, the trend among landlords has shifted away from acquiring large malls, reflecting broader uncertainties in the retail market. However, Landsec maintains confidence in the enduring appeal of key retail destinations. This optimism is predicated on the belief that the most significant and well-situated shopping malls will continue to draw retailers and shoppers.
Mark Allan, CEO of Landsec, clarified the company’s investment strategy, stressing a selective approach. He stated, “What we’re not trying to do is buy up various shopping centres that aren’t in that top 1%.” Allan’s remarks highlight a focus on acquiring catchment-dominant retail spaces that command attention and foot traffic.
A key part of Landsec’s strategy includes recent moves such as increasing its stake in the Bluewater shopping centre. Additionally, Allan has expressed confidence in capital deployment during the latter half of the company’s financial year. According to Allan, rents for prime locations, while having decreased by a third since their 2016 high, are now showing signs of recovery.
Landsec is not alone in this strategic expansion; it parallels movements by other major firms such as Frasers Group, which has also been actively acquiring shopping centres. Frasers Group recently purchased several malls, indicating a similar belief in the future viability of select retail centres.
Landsec’s strategic allocation underscores its confidence in the enduring value of prime shopping destinations in the UK.
