Developer hit by property devaluation but says fundamentals remain strong
Land Securities has announced a pre-tax loss of £1.73bn in its interim results, and has said it will freeze its demerger plans for the foreseeable future.
The developer, which is building schemes at One New Change in London and in Ebbsfleet, Kent, said that its profits have been hit by a valuation deficit of £1.72bn.
Salway: "Our plans for demerger were about creating shareholder value… in the current environment… it wouldn't"
And due to the continuing instability of the market, plans to demerge Land Securities into three separate companies - covering London, retail, and property outsourcing wing Trillium - have been put on ice.
Francis Salway, chief executive, said: "Our plans for demerger were about creating shareholder value. If the costs of transitioning debt in the current environment are so great that it wouldn't create shareholder value then we should stop. And that's exactly what we've done."
