Deutsche Bank opts for Victoria move

Deutsche Bank has decided to move some of its banking operations from the Square Mile to a Land Securities scheme in London’s Victoria.

The German giant has pre-let 92,000 sq ft of Land Securities’ The Zig Zag Building in Victoria on a 15-year lease and wiill move its asset management and private wealth management units into the building, which is now 77% pre-let.

Land Securities hailed the move as “just the latest example of how Victoria is becoming the location of choice for financial services businesses who want to be closer to their customers.” The Zig Zag Building is being built by Lendlease.

The news came as Land Securities posted half-year results for the six months to September 2015 and an updated development pipeline.

The firm said it will begin construction on a 65,000 sq ft leisure extension to White Rose shopping centre in Leeds “early next year” after winning planning permission for the scheme over the period. The extension is anchored by an 11-screen Cineworld cinema, and includes six new restaraunts.

Overall, Land Securities said it will deliver 1.4 million sq ft of developments in London over the next 12 months, while it has identified 1.4m sq ft of retail development and extension opportunities including Ealing Filmworks, Selly Oak, Birmingham, Buchanan Galleries, Glasgow, and White Rose, Leeds and 1.2m sq ft future London pipeline including 21 Moorfields, EC2, Nova East, SW1, 1 Sherwood Street, W1 and Portland House, SW1.

Meanwhile, its huge Westgate retail scheme in Oxford, being delivered by Laing O’Rourke, began during the period and is on course to open October 2017.

The firm gave no timetable for the £390m expansion of it Buchanan Galleries shopping centre in Glasgow. Land Securities said it was no longer “currently pursuing” the scheme in July due to clashes with a £742m Network Rail scheme nearby.

The firm’s pre-tax profit fell 31% in the half-year to £707.9m, down from £1bn the previous year.

Land Securiteis chief executive Rob Noel said the firm’s focus was on “completing and letting up the remainder of our committed projects while progressing a future pipeline”.

He added: “Land Securities continues to deliver the right space at the right time, and it’s paying off. Our Retail Portfolio is performing well and leasing levels in our London developments remain strong.

“In Retail, our portfolio is focused around our core themes of dominance, experience and convenience. Since the start of the financial year, we have sold selectively, recycling capital into the redevelopment of Westgate, Oxford, and other development opportunities. Operationally we are strong, with retailer sales and footfall up in our shopping centres and voids down.

“In London, we continue to benefit from our well-timed development programme delivering schemes into today’s supply constrained market. So far this financial year, a further 500,000 sq ft has been let or is in solicitors’ hands.”