Landsec to pump £2bn into new house building drive

The property large is getting ready to start out on web site from late 2026 throughout a trio of main residential-led initiatives that may ship greater than 6,000 properties.

At Finchley Highway in north London, enabling works and demolition have already been accomplished for the primary part of a consented 1,800-home scheme. Detailed planning is in place for the primary 600 properties, with a variation resolution anticipated later this yr.

Landsec’s first main city housing scheme in London on the O2 centre strip web site in Finchley

In Manchester, Landsec has restructured its settlement with JV companions on the Mayfield web site to unlock the potential for round 1,700 properties. A choice on detailed plans for the primary 879 models can be anticipated within the second half of 2025.

The third key web site is in Lewisham, south-east London, the place a masterplan masking as much as 2,800 properties – together with pupil and co-living lodging – is awaiting planning sign-off.

Landsec goals to recycle £3bn of capital out of workplaces and non-core belongings to fund the residential push and an additional £1bn of retail acquisitions.

Chief government Mark Allan mentioned: “Our capital allocation choices from listed here are about making certain that the expansion outlook for our portfolio in 3-5 years’ time is as constructive as it’s for our present portfolio at present.

“That’s the reason we’ve got set out a transparent plan to extend funding in main retail by an additional £1bn and set up a £2bn+ residential platform by 2030, to be funded by rotating £3bn of capital out of workplaces.”

The agency expects gross yields on housing schemes of round 6.5%, with internet yields of 4.8–5.5%.

In the meantime, Landsec has dedicated £600m to top-tier retail belongings together with Liverpool ONE and Bluewater over the previous yr and is focusing on one other £1bn of funding in prime buying locations the place yields are presently hitting 7–8%.