Bluewater owners reveal cautious optimism after recording return to profit
The owners of Bluewater shopping centre have revealed their "cautious optimism" after bouncing back to profit in the first half of the current financial year.
Land Securities, the commercial landlord at the Greenhithe mall, posted pre-tax profits of £275 million for the six months up to September 30, against losses of £835 million a year earlier.
It said prime retail rents had stabilised over the last six months with a significant increase in leasing activity – including securing Amazon 4-star at Bluewater, the first store of its kind in the UK.
Leisure and food and beverage are also becoming increasingly important elements of its retail offer with US-style diner Big Easy opening its first eatery outside of London there today.
It comes as the sector swings back and workers return to offices following the lifting of pandemic restrictions.
And while risks remain ahead, the firm said its outlook was one of "cautious optimism".
Last year, Landsec – as they are also known – devalued their property portfolio by £1 billion after recording huge losses during the economic crisis caused by the coronavirus pandemic.
It led the company, which owns the management rights for Bluewater and is the majority shareholder with a 30% stake, to say it was "reimagining" its retail offering.
But now the shopping centre's landlords appear to have weathered the storm and have struck a more upbeat tone.
Chief executive Mark Allan said: “We have used the last six months to drive our business forward, disposing of £250m of assets and progressing £616m of acquisitions that will accelerate our strategy and provide greater opportunities for growth.
“In focusing our strategy on shaping three distinct places – central London offices; major retail destinations; and mixed-use urban neighbourhoods – we are bringing renewed vigour to the business and creating value for all our stakeholders.
“One of the ways that we create value is by taking leadership positions on the issues that matter.
Landsec – which also owns the Piccadilly Lights in London and Trinity Shopping Centre in Leeds – has also set out its green credentials.
It has announced the creation of a new £135m net zero transition investment plan to help the group achieve its 2030 science-based targets and drive its transition to net zero.
Mr Allan added: "Today, we are proud to set out a fully costed investment plan to transition our business towards net zero, ensuring that we deliver on our science-based target to reduce our carbon emissions by 70% by 2030.
“Our actions over the last six months and throughout the pandemic have enabled us to significantly increase operational activity and we remain in a strong financial position.
"We look forward to demonstrating further progress over the coming months.”
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