Retail Portfolio outlook
Consumer behaviour is changing which will contribute to the on-going disparity of performance between winners and losers in terms of retailers, locations and property assets. We understand these dynamics and our strategy is well-matched to the changes taking place.
London Portfolio outlook
The key drivers of supply and demand for new offices remain broadly consistent with those we set out in 2010. However, we remain alive to changes in the market and will continue to manage our development programme and future pipeline actively.
The retail outlook remains challenging and, in the absence of
market-wide rental value growth, the onus is on property owners to
actively manage assets to create value. It is clear that with
the larger than anticipated fall in household disposable income,
pressures on retail sales have increased and there is a greater
risk of insolvency amongst retailers.
Fundamental to our approach to mitigating this will be the
quality of our portfolio and our close relationships with retailers
and leisure operators. We seek to understand their changing needs
and requirements and plan our asset initiatives and developments
accordingly. We also anticipate that the uncertainty in
capital markets may generate some attractive buying
Go to Retail Portfolio review
"The drivers of demand that we set out in 2010 when we first
restarted our development programme are:
High levels of lease expiries from 2013; Prospective occupiers
using the end of leases to rationalise estates and move to
buildings which are fit for today's corporate requirements; and
limited supply of new space.
While current conditions point to lower levels of take up and
are impacting the time that it takes for decisions to be made, the
dynamics outlined above are still applicable. We are encouraged by
the interest in our three remaining speculative schemes on site at
20 Fenchurch Street, EC3, 123 Victoria Street, SW1 and 62
Buckingham Gate, SW1. However, we remain alive to changes in the
market and will continue to manage our development programme and
future pipeline actively, as we did with the sales of Park House,
W1 last year and, more recently, 110 Cannon Street, EC4."
Go to London Portfolio review