Firm sold Red Lion Court scheme to Stanhope team last week

Landsec does not plan to commit “any meaningful” capital to new office development in the near term, the developer said in an update this morning.

Last week, a Stanhope joint venture bought the stalled Red Lion Court scheme from the developer for an undisclosed sum.

The job, which has been renamed Row One, is set to be carried out by Mace after the firm beat Skanska to the deal before it was put on hold.

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Landsec said it is looking at more office sales following last week’s deal with a Stanhope team for a scheme at Bankside that will be built by Mace

As well as the name change, Building understands Exigere has replaced G&T as cost consultant on the job while Real PM has taken over from CPC as project manager.

Landsec has appointed Skanska on a PCSA at two of its other jobs in London – Hill House and 55 Old Broad Street.

Skanska won Hill House last March and 55 Old Broad Street earlier this year – but both have slowed down as Landsec takes stock of its office portfolio in London as part of a rejig which is seeing the developer scale back the amount of office work it carries out. This includes plans for a £2bn sell-off of parts of its office-led assets over the next five years.

In this morning’s update, the firm said “investment activity in London offices is gradually recovering” and added: “Having sold £295m of offices well ahead of schedule, Landsec intends to accelerate further capital recycling over the next 12-18 months, to reinvest in major retail.

“Given the superior income returns and attractive growth in income, this remains Landsec’s highest conviction call, so in prioritising its capital allocation, the Company does not plan to commit any meaningful capital to new development projects in the near term.”

Landsec has been contacted for comment on the status of its Hill House and 55 Old Broad Street schemes.

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