Land Securities Plans Raising Cash through Asset Sales
In wake of the reports of pre-tax losses to the tune of £4.77 billion, chief executive of Land Securities, Mr Francis Salway announced that the company would keep on raising cash by offloading its assets until the financial situation stabilizes.
The losses were much more than expected and leave the company with no choice but to raise more cash. Reports have also emerged that four of its properties including London office space, shopping centres and retail town parks have been sold.
The company, which is looking to raise about £370 million in the next twelve months through property sales managed to have a positive start with the sale of an asset at 22 Kingsway, London, which fetched it an impressive profit of £39 million and the Aintree Racecourse Retail Park, which raised £61 million in cash..
Land Securities has a huge portfolio, which includes shopping centres, retail, office rentals and desk space
The company management is facing a lot of flak from the shareholders as the stock price of the company has plummeted. Reports of Mr Salway loosing his job have also not done any good, even though the company has denied these reports. According to Salway, the major problem that the company faces right now is the dip in office rentals. Once the rentals across the country start recovering, the company’s financial health should also see an uptick.
