London will be the centre of the business with investment to come through funds raised from the sale of assets elsewhere, said Allan.
Assets in the capital account for 64% of Landsec’s current portfolio, he said in a statement ahead of an investor day, and are of very high quality with long leases and strong tenants.
“London remains one of the world’s gateway cities and this portfolio represents a good source of liquidity over time,” he added.
Retail will also play a part in the within the portfolio going forward, said Allan, even with the coronavirus (COVID-19) challenges but this will be now focused around Landsec’s six regional shopping centres with the use of the space to be ‘reimagined’.
Regional shopping centres have been most impacted by the coronavirus lockdown said Allan but represent only 13% of the portfolio and are among the very best in the sector.
Many suburban shopping centres offer significant repurposing potential, he said.
Landsec’s interests in hotels, leisure and retail parks are to be sold said Allan as they are areas where it has no competitive advantage.
Money raised will be invested in mixed-use urban opportunities, new investments in London and potentially other major UK cities.
Landsecs will also take more operational risks in its new developments, with income no longer to be the key driver, said Allan.
“Today we are setting out a strategy that makes the most of Landsec’s strengths and positions the business for growth. It will build on existing areas of competitive advantage. It will position the business to benefit from long-term macro trends. And it will be built around a clear, authentic purpose so that it delivers value not just for shareholders but for all stakeholders,” he added in the strategy statement.