Land Securities Group PLC · LSE:LAND
Land Securities — Investor Presentation (November 2007)
78 slides from Land Securities's investor presentation, Nov 27, 2007
Slide 1: The Bankside Story: Bluefin Building and Bankside 2&3
The Bankside Story Bluefin Building and Bankside 2&3 London, SE1
Slide 2: Presentation Team
Presentation Team Graham Hayman Leasing Director, London Portfolio Tim Makower Partner, Allies and Morrison Architects Digby Flower Executive Director, CB Richard Ellis Edward Thacker Investor Relations Manager Trevor Mitchell Senior Project Manager
Slide 3: Agenda
Agenda Introductions London Portfolio Overview Graham Hayman The story behind Bankside Tim Makower The disposal strategy Digby Flower Q&A session
Slide 4: London Portfolio overview
London Portfolio overview Graham Hayman Leasing Director, London Portfolio
Slide 5: London Portfolio
London Portfolio £8.3bn portfolio 10 million ft2 office and 1 million ft2 retail floor space 19.1% net reversionary potential(1) £31 per ft2 (£332 per m2) average office passing rent £2.7bn (3.9 million ft2) development pipeline Acquired £537.1m and sold £333.3m of property 1.1 million
Slide 6: London strategy
London strategy Enhance returns through development Active asset management Focus on geographic areas of activity – clustering Enhance value through mixed- use Exploit strong relationships with occupiers A leading supplier of accommodation for major occupiers
Slide 7: Achievements
Achievements 1.1 million ft2 of developments completed in H1 and now 95% let Record rents for Mid-town in the range of £71psf - £76psf achieved in the tower building at New Street Square The entire office element of 378,000 sq ft at Bankside 2 and 3 pre-let to Royal Bank of Scotland £0.3bn a
Slide 8: London Offices valuation surplus
London Offices Valuation surplus – 6 months to 30 September 2007 10 8.5% Valuation surplus / (deficit) % 5 4.2% 2.4% 0 Investments Developments All assets £104m £160m £264m Developments create over half the total valuation surplus on London offices
Slide 9: London Portfolio sales
London Portfolio sales Greater London House, NW1 New London House, EC3 Blackfriars Road, SE1 £0.3bn of sales at 15.3% above valuation* * Pre sale costs
Slide 10: Development office lettings
London Portfolio Development office lettings One Wood Street – New Street Square – Cardinal Place – Bankside 2&3 – 100% let 87% let 100% let 100%
Slide 11: The next phase of developments
London Portfolio The next phase of developments Dashwood House, EC2 10 Eastbourne Terrace, W2 One New Change, EC4 155,000 ft2 - 2008 65,000 ft2 - 2009 555,000 ft2 - 2010 Park House, W1 20 Fenchurch Street, EC3 385,000 ft2 - 2010 600,000 ft2 - 2011 Accelerated delivery for Dashwood House and 10 Eastb
Slide 12: Looking ahead – London Portfolio
Looking ahead – London Portfolio Timing of development completions £m 900 Anne’s Queen Gate Park House 750 Total development cost New Street Square 600 10 Eastbourne Terrace 450 One New Change 30 Eastbourne Terrace Fenchurch Street 300 Wood Bankside 2/3 150 House Dash- wood St 0 2008 2009 2010 2011
Slide 13: The story behind Bankside
The story behind Bankside Tim Makower Partner, Allies & Morrison Architects
Slide 14: Bankside UBS Investors Tour
Bankside 123 UBS Investors Tour Allies and Morrison Architects – 27 November 2007
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Slide 37: Bankside Building 2 Materials palette
Bankside Building 2 Materials palette
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Slide 42: West elevation
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Slide 53: Section 106 wider area improvements
1. Tourist Information Cente 2. Street lighting Strategy Document 3. Goteway Improvements [Art] 4, Street lighting Implemertation 5. Signage 6. Community Centre 7. Public WC 8. Gallery Space 9. Public Art 10. Open Space ltem 2/4 : Area of lighting Study GE Area of Street lighting Siudy MMM Aco C: Wi
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Slide 57: The disposal strategy
The disposal strategy Digby Flower Executive Director, CB Richard Ellis
Slide 58: Mission One
Mission One To prelet 3 very large buildings that do not exist
Slide 59: Challenges
Challenges Location regarded as hostile and inaccessible In competition with Canary Wharf, More London and Aldgate Union Very specific occupational requirements Against a very tight time frame
Slide 60: Solutions: Demonstrate accessibility
Solutions Demonstrate accessibility Jubilee Line Millennium Bridge
Slide 61: Solutions: Demonstrate new environment
Solutions Demonstrate new environment Tate Modern – cultural icon of the century North South blockade removed New permeability to site 90,000 sq ft of retail, restaurant and health clubs Covent Garden style restaurant boulevard
Slide 62: Neighbourhood improvements
Almost entirely pedestrianised Significant neighbourhood improvements Street lighting Tree planting Signage Calming and narrowing of Southwark Street Public Art
Slide 63: Solutions: Create a vision
Solutions CREATE A “VISION” of the estate not just the building Models CGI’s External Internal Branded CGI’s
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Slide 67: Solutions: Demonstrate Deliverability
Solutions Demonstrate Deliverability Ownership of site Vacant possession No contaminated land issues Rights of light issues resolved Planning Consent / Section 106 agreement completed Building contract placed Credible Building Programme Physical demonstration of site activity LAN
Slide 68: Assessment of IPC's requirements
Assessment of IPC’s requirements Very specific requirements Clusters of magazine titles Each magazine with own production requirements
Slide 69: Addressing IPC's requirements
Addressing IPC’s requirements Blocking Stacking Space Planning Technical adaptation Provision for data centre Use of lower ground floor Escalator Finishes
Slide 70: Closing the deal
Closing the deal Negotiating and agreeing detailed Heads of Terms Completing the legal documentation True team effort Land Securities Group PLC Freshfields Bruckhaus Deringer Allies & Morrison Architects Bovis Lend Lease Foreman Roberts Whitby Roberts Davis Langdon Flip from pr
Slide 71: Mission Two
Mission Two Exploit the value of the remainder of the site Reduced risk profile following IPC sale Confidence to develop speculatively Early cycle start on site and delivery Full Land Securities “City Specification” Completion of the holistic vision
Slide 72: Solutions: Research led marketing
Solutions Research led marketing during construction Identified and targeted prospective occupiers including: KPMG Thomson Corporation Guardian Newspapers London Borough of Southwark Royal Bank of Scotland (RBS)
Slide 73: Solutions: Detailed presentations and proposals
Solutions Detailed presentations and proposals Significant negotiations with London Borough of Southwark / RBS Leveraged Southwark deal to close RBS
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Slide 75: The RBS deal
The RBS deal Accommodation: Bankside 2 168,000 sq ft Bankside 3 210,000 sq ft Total 378,000 sq ft Lease: 20 years, no breaks Rent: Bankside 2 £42.50 psf pax Bankside 3 £46.50 psf pax Rent Free Period: 24 months
Slide 76: Q&A
Q&A
Slide 77: Important notice
Important notice This presentation may contain certain ‘forward-looking’ statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results express
Slide 78: Contacts
Contacts Edward Thacker Abby Guthkelch Investor Relations Manager Investor Relations Executive Tel: +44 (0) 20 7024 5185 Tel: +44 (0) 20 7024 5255 Fax: +44 (0) 20 7024 5011 Fax: +44 (0) 20 7776 9305 Email:[email protected] Email: [email protected] Web: www.landsecurit
Land Securities Group — Investor Presentation (November 2007) on 6ix