Joint ventures
Sometimes it makes business sense to join forces with other property investors; so that we can manage the urban environment more efficiently and drive above average returns from our joint ownerships.
20 Fenchurch Street Limited Partnership
A 50:50 joint venture partnership between Land Securities and Canary Wharf Group, which was set up in October 2010 to develop 20 Fenchurch Street, EC3. Land Securities and Canary Wharf Group have been appointed as joint Development Managers and both are responsible for the leasing, with Land Securities taking the lead. Canary Wharf Group, has been appointed as Construction Manager. Planning consent for the proposed 37 storey building was granted in October 2009. It will provide approximately 690,000 sq ft of world class space in floor plate sizes of 14,000 sq ft to 28,000 sq ft with a skygarden on the top three floors. Completion to the ground floor level is planned for February 2012. Construction of the superstructure will follow, with completion of the project anticipated in the second quarter of 2014.
Birmingham Alliance
A joint venture partnership between Hammerson plc, Pearl Group Ltd (previously Henderson Global Investors Ltd) and Land Securities, is proposing to develop a site known as Martineau Galleries. To date, the Birmingham Alliance has brought to the city Martineau Place, completed in 2001, Bullring in 2003 and Bullring Link in 2004. Martineau Galleries is the fourth and final phase of its retail-led regeneration plans for the city.
Bristol Alliance
A partnership between Land Securities and Hammerson plc which regenerated Bristol's city centre. The new Cabot Circus is an innovative, large scale development providing retail, leisure, restaurants, offices, car parking, student accommodation and a hotel, creating some 1.5 million sq ft of mixed-use space in total. Having received detailed planning consent in December 2003, and signed the development agreement with Bristol City Council on 14 June 2004, works commenced on site in mid 2005. The new scheme opened its doors on 25 September 2008, quickly establishing the dominant position in one of the UK's most important cities.
Empress State Partnership
A joint venture between Land Securities and Capital & Counties (capco, formerly Liberty International), which was set up in August 2008. Its sole asset is Empress State next to Earl's Court centre, London. Empress State is a 445,000 sq ft 30-storey office tower with an 8,600 sq ft retail and leisure Plaza Building to the front of the site. It has been owned by Land Securities since its development in the 1960s and was substantially refurbished and extended in 2003. It was let in its entirety on a 15-year lease to 2019 to Metropolitan Police with RPI rent uplifts and has shown reliable investment performance since then. There is an opportunity for Land Securities to partner Capital & Counties in their major regeneration plans for the area through our 50% share in Empress State.
The Harvest Limited Partnership
In November 2007 we launched The Harvest Limited Partnership, a 50:50 joint venture with J Sainsbury. This adds our expertise in development to Sainsbury's desire to add new space to stores, with the two companies working together to unlock and realise the development potential of a number of sites. Initially, we contributed a Sainsbury's supermarket in our ownership while Sainsbury's contributed two freehold stores. In December 2007 we increased the portfolio with the purchase of the Maltings shopping centre in Salisbury for £27.5m, this 95,000 sq ft property includes a Sainsbury's store, 27 retail units and a car park. In 2008 we added a further store into the Partnership, this time in Lincoln plus the adjacent Lindis Retail Park. The JV currently owns 5 assets with re-development potential.
Metro Shopping Fund Limited
A joint partnership with Delancey which has been running since June 2004. Combining a selection of shopping centre assets valued at approximately £400m. The properties are all located outside Central London and include Shopstop at Clapham Junction. The largest asset is Southside, Wandsworth which was purchased by the partnership in 2005. Some of the assets have valuable development angles which the partnership will explore at the appropriate time.
Oriana Partnership
A joint venture with Frogmore Real Estate Partners. Set up in 2007, the Partnership owns two large and very prominent consolidated holdings on the north west corner of the junction of Oxford Street and Tottenham Court Road. The partnership is one of the dominant owners in this section of the east end of Oxford Street, immediately opposite Tottenham Court Road underground station. The holdings are from a variety of dates, and the site was assembled mainly in the 1990s by Land Securities with a view to longer term development. The former Virgin Megastore block is now being considered for a minor redevelopment to improve the configuration of its retail space and the accommodation over.
The total net floor area of the current accommodation is 267,750 sq ft, about 70% of which is retail space. The holdings have been very successful assets in terms of performance since 2007, with rental 'Zone A' improving substantially towards the £300 psf mark. The possibility of contributing a major scheme as part of the regeneration of this area is being actively pursued.
Scottish Retail Property Limited Partnership
In a joint venture with British Land Plc, the Scottish Retail Property Limited Partnership was created in March 2004. This venture comprises Bon Accord and St Nicholas shopping centres with the objective of providing both benefits of scale and the ability to maximise the long term value of the centres. The centres extend to 700,000 sq ft with over 60 stores anchored by John Lewis, Marks & Spencer, Boots, New Look, Next, Top Shop and River Island. The centres have the strongest retail mix in the city, including two department stores - a 200,000 sq ft John Lewis and 110,000 sq ft Marks and Spencer.
St David’s Partnership
As substantial landowners in Cardiff city centre, Land Securities and Capital Shopping Centres Plc (formerly Liberty International) began exploring retail development opportunities in partnership to maximise Cardiff's many commercial, cultural and civic amenities. In 2004, The 'St David's Partnership' received detailed planning approval to deliver a 1 million sq ft mixed-use scheme, one of the largest retail led developments in the UK. St David's 2, which is anchored by John Lewis, includes new shops, cafes and restaurants and 304 residential units. Set around streets, arcades and squares breathing new life and vibrancy into Cardiff, the Centre opened on 22 October 2009 reinforcing Cardiff as a major national and international capital city.
Thomas More Square Estate Co-ownership
The Thomas More Square Estate Co-ownership was formed between Land Securities and Cadillac Fairview, the property arm of Ontario Teachers' Pension Fund in 2007, shortly after Land Securities had acquired the Estate. This comprises 560,000 sq ft of predominantly office accommodation of Grade A quality with retail to the ground floor of some areas of the Estate.
The Estate is a dominant holding adjacent to St Katharine's Dock on the south side of the City of London and has provided an opportunity to upgrade and re-present a substantial and consolidated holding including the renewal of public areas and the 'front of house' of the various buildings. This has enabled a major letting of 192,000 sq ft to News International in 2009 reducing very substantially the void areas on the Estate. The holding forms part of a larger area of about 35 acres between St Katharine's Dock and Tobacco Dock with long-term potential
